SALES ANALYSIS

Our main market area is the cities and towns where the trend of chewing gums is
increasing day by day. These areas are a big market and have a large scope.
70% of the people are the consumers of chewing gums in the rural and urban
areas and we earn the 40% of the profits through the sale of these chewing gums
alone. It is a rapidly growing market. The flu and fever are widespread nowadays
and averagely every three out of ten people have flu at a given time for which
they take medicines usually antibiotics or anti-allergic medicines. Therefore a lot
of medicines for flu, fever and its associated symptoms like head and body ache.
The pharmaceutical companies earn 35% of the profit from the sale of medicines
for flu and fever. When we introduce this new dimension to our product our sales
will increase tremendously and so will our profits.

The demand for our chewing gums is increasing day by day and so are our
sales. The costs of supplies had increased by 1% but that was reverted by series
of successful negotiations with the suppliers. But the cost of production has
increased significantly during the last year which includes the labor costs and
other expenses. But we have made special efforts to make our company cost
effective and cut down unnecessary costs while maintaining our standard and
quality and we have been quite successful as well. Our company profits have
increased ever since 2001 with only a small drop in 2005. Our chewing gums
contribute a significantly large amount in our profits.

We have private distributors who are responsible for only the distribution of our
product. They are experts in the field and have distributed our chewing gums
very effectively so far. They have made our product available in nearly all retail
stores according to the demand in a particular area. They have been making the
product available exactly where the customer expected. The distribution channel
we have followed is:
Our company→ wholesalers→ retailers→ end users

Our key customers are the children, teenagers and youngsters who consume
80% of our total sales. The young generation is fonder of the chewing gums as
compared to the older people.

The area which we serve through our product has grown over time significantly.
We have expanded in different parts of the country and internationally as well.
Also we have captured more of the market as compared to the past. Our product
has gained immense popularity in the past few years and we have also launched
many new flavors of our chewing gums. Also we have made an extra effort to
continuously improve the quality of our chewing gums and as a result our quality
is growing better and better everyday. As far as the distribution channel is
concerned it has become more effective then it had been in the past as our
relationships with the distributors have grown to be more intimate then ever and it
has helped us to make our distribution channel more error proof and effective.
 COMPETITOR ANALYSIS

The market share was measured by carrying out a survey about our company’s
sales, distribution effectiveness and quality of our product as compared to the
competitors’ sales distribution and quality. We conducted the survey in different
parts of the country where the competitors could not manipulate or influence the
results. The data was collected and then the results were evaluated. The factor
that posed threats to the achievement of the correct results was the influence of
any of the competitors in the market that could result in errors in the results.

Our company’s strengths are that our product has developed a quality image
over the years. As an added benefit we give this quality product at lower price
than most of our competitors. Those of our competitors who provide their product
at equal or lower costs have been unable to meet the quality requirements of the
customers. The competitors who are providing the chewing gums at higher price
are now working on increasing their cost effectiveness and eventually reducing
the prices of the product. This could pose a major threat to our company in the
future.

The future strategy that we are working on is to improve our quality while keeping
the prices low. Also we are trying to bring new innovations to our product so that
we can increase the attractiveness of our product and capture more market
share and maximize our profits.

We have been quite successful in the past 3 to 4 years where as our competitor’s
performance was a step ahead of us. Our market share was 39% and the share
of our major competitor was 40%. Our net profit margin was 26%, the return on
investment was 25% and our company’s image was outstanding. The only
difference between us and our competitors was quality. Though we had slightly
less market share but quality was our prime objective at all times.

Our strategy in the past had been to provide quality and health friendly chewing
gums to the market at lower prices and in their desirable flavors so that we can
capture maximum market and break the loyal customers of the competitors and
make them our customers. We did not want to just attract the customers to try
our product once but we also intended to make them loyal to our brand by
providing them satisfaction and generate their trust. Now that we have become
well established in the market we want to bring innovations in the chewing gums
while still maintaining the prices lower than our competitors and providing the
best quality in the market and maintaining our image of best quality product along
with effective distribution of the product.

We have made a committee to develop and design the idea of the innovations
that we could bring to our chewing gums and they have come up with the idea
that we should introduce a medicated chewing gum that helps in curing flu, fever
and its symptoms. Its use other than when you are suffering from flu and fever
helps in preventing flu and fever and it will not create drowsiness like other
tablets and syrups for flu and fever. In addition it will have a great taste of our
chewing gums. Such a product will be exceptionally popular with children who do
not like to swallow tablets or do not like the taste of syrups. The teenagers and
youngsters would also prefer this chewing gum over the tablets and syrups that
taste awful and make them lethargic and drowsy.

To implement this idea of medicated chewing gums we will have to join hands
with some pharmaceutical company so that they can provide us the formula for
the cure of flu and fever without causing drowsiness. With that formula we will be
able to produce our new medicated chewing gum. We will give the
pharmaceutical company a part of the profits as its commission. We have
enough financial resources to produce and launch our new medicated chewing
gum.

Our product already has an image of quality and we have gained the acceptance
and trust of our customers so we are in a good position to launch and market our
new product. We will hopefully be able to capture a large market with our image.
We will have to first create the awareness of the product in the people as this will
be a new product and people have never seen the medicines in the form of
chewing gum before. For this purpose we will require a lot of promotion so that
awareness is created and also the people come to accept the combination of
medicine with chewing gums. We will have to create awareness about the
benefits of using this chewing gum instead of tablets and syrups.

We will require a lot of finances to manufacture the medicated chewing gum and
then heavy promotion of our new product. The company currently has this much
of finances that along with some help of the investors the company will
comfortably meet the manufacturing, promoting and distribution costs of this new
product.

5)

Our motive is to introduce this new product in the market and become the
leaders in this new product. We intend to make this product successful in the
market by using a totally new formula and developing a strong image for this
product of ours. We have a strong will to capture most of the market, become the
leaders in the category and to develop a strong image and make customers loyal
to this product as well. We intend to succeed by giving a high quality product at
relatively low prices and many added benefits.

Our existing products promise two things; quality and low price and the same
goes for all our upcoming products including the medicated chewing gums. But
depending on the competition we will have to review our strategies and introduce
new products to retain our image in the market.
Our advisory council and various departments are predicting stiff competition
between us and our major competitors in the next 3 to 4 years because they
have started focusing on innovation, quality, low prices and long lasting relations
with the customers. So we have to frame our future strategies according to our
competitors. Our strategies in future will be more concentrated on low prices and
profitable relationships with our customers.

3 objectives
A.CORPORATE OBJECTIVES:

B.DIVISIONAL OBJECTIVES:

C.MARKETING OBJECTIVES:

1. QUANTITY:
We should make the quantity of our product large
enough to make sales at high level and give to different
companies for selling the chewing gum. More quantity more
sales so we will get more profit as flu and fever is very
common and people will prefer this product more and more
because it is easy to use and chew.

2. DIRECTION:
We should direct the medical market.

3. NUMBER:
It should be large in number as we will have more
consumers for this product so we have to enhance our number of
production.

4. TIME FRAME:
 We should achieve our marketing objectives in
one year as we have set this time period for getting our aim
done.

5. RATIONALE:

D.PROGRAM OBJECTIVES: Our program objectives are as follows:

1. PRICING:
We should set the price of our product reasonable so more and more
consumers will buy and we will be able to make our name in the market as we are the
first one who are launching this chewing gum. We should be aware the after launching of
our product competitors can come in the market and can make a product like ours so we
should set the perfect price as SANCOS is available at rs.25 so we will set the price of
our product at rs.6.

2. ADVERTISEMENTS/ PROMOTION:
We should make advertisements interesting and
attractive so that we can easily attract the customers so that they come quickly and buy
our product. We should promote this chewing gum by making adds which should show
that our product is of good quality and its effective enough to get rid of fever and flu. We
should advertise our product through newspapers and through internet also. And we will
also tell our consumers that our product can be used regularly as it has no side effect.

3. SALES/DISTRIBUTION:
We should make sales of our product through a proper channel
of distribution as we know that we have two major channels of distribution i.e. direct
channel and indirect channel. It depends on our organization that it wants to follow direct
or indirect way so we can use both ways together also. It depends on the number of
factors like area, where needed more, where needed less, quantity. As we know that in
rural areas people do not chew gums so we will follow indirect channel there. But in
urban areas people use to chew gums a lot so we will prefer direct channel in urban areas.
4. PRODUCT: We intend to launch our new brand with the following additional
features:
• We are introducing three new flavors including mango,
pepper mint and black mint.
 • For children, we intend to launch gums with cartoon
characters on it like spider man, superman and batman with
tattoo stickers as well.

• We intend to provide excellent quality to our customers.

5. SERVICE:
We should provide services to our end users like we can deliver our product
to whole sellers and after that they will sell our product on behalf of our company. We
should also provide facility to our direct users we should give them proper services like
we can make a pamphlet with our product so that users will easily come to know when to
use or how to use the product and we should give our toll free number also so that our
customers can call us if they have any query. And we will also launch a website for the
satisfaction of our customers.

4. MARKETING STRATEGY:
We should make the best marketing strategy to meet our
goals and objectives done.
A. STRATEGIC ALTERNATIVES: Our alternative strategy is that we will allow
our competitors to launch their product first if our strategy doesn’t work in the
introduction stage and we are unable to convince our customers.

B. CUSTOMER TARGETS: Our target is to achieve more and more customers. We

will mainly target chewing gum supplier but as our product is medicated so our
target will be at medical market also.

C. COMPETITOR TARGETS: We should be aware of our competitors we should

fail the targets of our competitors for getting name in the market and having more
and more profit.

D. CORE STRATEGY: Our core strategy is to have a competitive edge in our field
against our chewing gum competitors. We should work hard for achieving our
objectives done.

5. MARKETING PROGRAMS: We should make the best marketing program for

promoting our product in the market our marketing should be best one as we are
the first one who are launching this product.

A. PRICING: We will set the reasonable price for having more and more customers
as this product is not available before in the market so we will sell our chewing
gum at low cost that is for rs.6 it is quite reasonable and people will easily buy
this gum for prevention of flu and fever.
 B. ADVERTISING: We will make the advertisements best enough to gain attraction
of customers our advertisements should be colorful, interesting so that people will
see the advertisements and come and buy our product.

1. COPY: We should make unique advertisements they should be new they should
not be copied from any other source.

2. MEDIA: We should interact with media also because media will help us in
promoting our product. Media will support us in getting our goals done. Through
media we will make our name in the market.

3. TRADE VERSUS CONSUMER PRODUCTION:

C. SALES/DISTRIBUTION:

D. PRODUCT DEVELOPMENT:

E. SERVICE:

F. MARKET RESEARCH:

FINANCIAL DOCUMENTS:
Our financial documents include

1. Budgets and

2. Pro forma statements

BUDGETS:
It is of vital importance that the product were launching like here it’s a chewing
gum with special characteristics which is to get rid of fever, so the advertising
promotional activities should be according to our budget in the mean while
profitable as well.

First of all we have our promotional and advertising that is to persuade and
communicate with our customers .we already have an image of bubble gum
production in the market people are already aware of our name n having this
totally new image of fever removal, high promotional and awareness activity is
required, having an acceptable image already will make a positive impact on our
flu fever gum.

Expenses incurred should be moderate and must not exceed our revenues
having a have a low profile of production and having healthy relationship with the
pharmaceutical company will give us leverage. With joint promotional work will
distribute the expenses. So for large scale acceptability branding [FLU FLEW]
with vigorous promotions along with advertisements, billboards and doctors
preferences will make our product famous and acceptable in the market.

SALES:
Since we are selling our products we have to consider the cost prices. Once the
product is launched into the market, we have to keep a check on the number of
sales occurring with respect to different localities, since our target market is
youngsters and teenagers. So expectancy of sales is done accordingly, definitely
a factor of risk is involved, there might b chances that people may not accept a
chewing gum to relieve fever……but with high risk there is more chances of
profitability. For this purpose direct or door to door sales could be done or
through agencies as here it’s the pharmaceuticals. Through prototype
development we get the idea how much acceptable our product is. For example if
35% of consumers out of 50% are interested in buying and find it affective than
through market tests 7 prototypes we get the idea that how much probability of
sales is estimated as discussed here its 35% which in future may increase from
40 to 45%which will prove to b a healthy notion for our financial analysis.

RESEARCH:
we have to Price our product according to what the market will pay, not according
to our costs. We have to take into account our competitors and what they charge
and their relative quality. (Identify the customers and market. And know this for
sure? Test your assumptions: this is a critical part of the proposition and
generally benefits from more thought and research to confirm that a big enough
market exists for our idea as for our flue relief gum. Considering our competition -
what are people buying currently and why will they buy from you instead?)Here
definitely people will be more interested as it’s a totally new and innovative edible
flue relief formula. How many new customers do you need, by size and type, by
product and service? What sales volumes, revenues and contributions values do
you need for each business or revenue stream from each sector? What is your
product mix, in terms of customer type, size, sector, volumes, values,
contribution, and distribution channel or route to market? What are your projected
selling costs and net contributions per service, product, and sector? All these
research methods will b adopted and the development process will be made.

PRODUCT DEVELOPMENT:
the factors mentioned above, by keeping them in view and remaining on the safe
side of expenses methods will be opted which are cost effective as well as
profitable to our organization development process will be continued.

PRO FORMA STATEMRENTS:

Pro forma financial statements are prepared in advance of a planned transaction,
financial statements are prepared in advance of a planned transaction, with
anticipated results of the transactions; main emphasis is on the cash flows net
revenues and taxes.

COSTS:
For launching a new brand of chewing gum (FLU FLEW)....being the producer
the net affects of production will be calculated and the net costs and expenses
will be demonstrated by the financial departments that after all the taxes and
other expenses what affect it will have on our company financial viability and the
extent of all its profitability, if it is good it may attract lenders and investors to give
their money in.......and will have equal part in debt to equity ratios. This is a vital
part of the proposition to confirm that the gross profit (the difference between
costs of bought in products/labour and sales revenues) covers our/their financial
needs (including a living wage and other fixed costs of running the enterprise.

REVENUES:
The account of revenues is also very important as it forecasts the amount of
income that our sales will make on regular basis. We have to keep in mind the
sales volumes and the contribution in each sector of target market.

PROFITS:
Profits base largely on our return on investment and the value of money as well
as the pricing of our product. Pricing is one of the regulators of economy the
more money we earn on our investment more profitability is there. With respect
to the organization

“Difference of product cost and price is called mark up or profit “so being the
production head remaining focus should be the main objective.

For profit oriented; to achieve a target return that is our return on investment and
do the pricing according, for our general brand for all consumers is RS 3 and
medicated is 5.99RS

This can work only if there are no market forces as for our product there is no
market of medicated chewing gum seen so the pricing at some level if increased
help in profit maximization.

MONITORS AND CONTROLS; SPECIFIC RESEARCH

INFORMATION TO BE USED:
Secondary data: these includes

1. SALES REPORTS

2. ORDERS

3. INFORMAL SOURCES

SALES REPORTS:
Maintaining the records of the net amount of sales and creating reports is also
helpful which will give us the idea the market demand of our product and through
these reports we can further faster up our production process to attain maximum
profitability.

ORDERS:
Through our surveys and sales reports we have the idea how much of our
chewing gum is needed by the people and then orders for production could be
taken and accordingly production could be done.

INFORMAL RESOURCES:
informal sources include word of mouth, the people who have used the product
may transfer their experiences about it which indirectly helps in promoting so to
keep a check on the quality and the views of consumers regarding the product
[flew flu] chewing gum; survey is done and the reactions are monitored so if there
is any drawback or any sort of defect or fault could be rectified.

PRIMARY DATA: it includes

1. SALES RECORDS

2. SPECIALIZED CONSULTING FIRMS

3. CONSUMER PANNEL

SALES RECORDS:

Since our organization already has a specialist image in the market for chewing
gum production; so the annual sales record proved to be very profitable. With our
total new medicated chewing gum brand for flu relief a proper checking and
accountability record is to be maintained. This is the primary or basic method to
keep in link with the products outcome.

SPECIALIZED CONSULTING FIRMS:

To produce a flavored chewing gum with a special medical ingredient we surely
have to refer to some specialized firms so that we can get the authentic biological
formula that can affectively run with the bubble gum, so consulting these firms
and keeping in touch with the top authentic organizations is necessary to keep up
with the increasing competition and to keep our consumers satisfied.

Through this we will be able to launch our product on larger scale with the latest
biological advancements and affective formulas.

CONSUMER PANNEL:
How affective your product is can be judged through a consumer panel since it’s
the people who have to use your product, review boxes can b installed in the
stores or shops where your product is available, comments can be taken so from
different localities different consumer panel can be created by which the progress
can b estimated and the future tendency or acceptability by the people.

CONTINGENCY PLANS:
Business continuity management and contingency planning are of course
essential and unavoidable tasks. There is a possibility that our product might not
work it is necessary to understand the underlying risks and disaster impacts.

Since the concept of a chewing gum for fever and flu relief is new to the people
with high chances of risk so there is a possibility that the plan may backfire.

Impact analyzation of the product is necessary, if there is 40% risk out of

hundred we should do for the plan. Risk magnitude should be kept in mind.

There can be adverse affects of our chewing gum that is if it is available to every
store children may buy it like any ordinary chewing gum which may affect
negatively; so in order to avoid that we have to keep or supply of this special
medicates gum to medical stores and drugs centers, since we are restricting our
brand to the people having flu and fever there are chances of less profitability
.since our motto is to have maximum profitability and maintain a good image for
our new brand also to increase the demand for it ......STATUS QUO.....which is
one of the pricing objectives.

As we have targeted people having flu and fever so we have restricted our sales
to this specific group, for this we will maintain the status of price and try to
increase the demand for the chewing gum other factors can also be involved
like ......AGRESSIVE ADVERTISEMANTS......PROMOTIONAL
ACTIVITIES......GIVE VOUCHERS AND LEAFLETS.......give usage inscriptions
lists at different hospitals clinics etc.

Keeping a check on our rivals and competitors is also important, it might be

possible that they are also going to launch the same category of product, so let
them first launch their product and keep a laid back status in the mean while we
can further more enhance or add additional qualities to it.

Will help us in many ways as the people will already be aware of the product and
chances of acceptability is more esp. when the virus of flue and fever is common
in seasons, we can reach maturity level in this stage.