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International Islamic University Islamabad

Muhammad Kamran Haider Submitted to: Professor Syed Adnan Shabbir

Table of Contents
Acknowledgement Executive Summary Description Mission Statement Goals and Objective Core Competencies

Situation Analysis SWOT Analysis Competitors and company analysis Target Market Marketing Mix Settlements of price Budget Schedule Income Statement Balance Sheet

Acknowledgement
We are very thankful to Allah Almighty who has given us the power and ability to think and judge the maters and then to make use of the blessed abilities. Our most respectable teacher Prof. Syed Adnan Shabbir is the only source who directed us to apply our abilities in the required direction.

Executive Summary
This marketing plan for Versatile Bags Manufacturing Company Pvt Limited has been created by its founders to secure additional funding for growth and to inform employees of the company current status and direction. Although VBM is launched one year ago, the company has experienced greater than anticipated demand for its products and research has shown that the consumer and retailers would like to buy more stylish bags. We are interested in extending our product line as well as adding new product line. In addition, we plan to explore opportunities for online sales. The marketing environment has been very receptive to the companys high quality

products, stylish in trendy colors with logos and slogans that reflect the interest of students enthusiasts. Over the next coming years our company can increase its distribution, offer a new products and obtain new customers.

Description of Company
Versatile Bags Manufacturing Company was founded one year ago by Muhammad Kamran Haider, Muhammad Raza, Farukh Waqar and Hafiz Muhammad Umer Javaid. We all are graduates and have been friends since university decided to develop and market a line of bags with a unique-yet universal-appeal to students enthusiasts. We have opened a business called Versatile which manufactures Bags. Versatile bags reflect our passion for the students. The Versatile original jeans and leather bags decorated with company as well as university logos. The bags are used to carry books, documents, laptop and stationary items like calculator, pens, pencils, card etc.

The VBM Company sells bags for both male and female students, in different colors with different designs such as black, grey, blue, green etc. The VBM Company is focused on the students of schools, colleges and universities. Now we are introducing our product in International Islamic University Islamabad (IIUI). We have aim to introduce our product in other cities of the country. We provide high quality products which attract maximum customers that will increase our sale. In our marketing plan our main item i.e. Bags. Our company aims to become leading trendsetter in innovative bags. All our workers work as a team and provide best services to privileged customers. Our company offers a wide range of Bags. We have our own designs to sell. We also give customization facility i.e. customer wants to have some alteration or to change the design, they can easily do so. Our Bags are outstanding and esteemed for their fine material, fashion oriented and trendness as compared to the bags of other making company. This is because our companyonly promotes those designs who are of latest demand of male and female students. This plan will outline how versatilebags intend to introduce new product, expand its distribution, enter new markets and give back to the community.

Mission Statement:
Our mission is to produce quality goods every time and remain strictly responsive and alert to the requirements of the customers and their priorities. To aspire for becoming leader and trendsetter in the field we work. To be sharing, caring and attentive to everyone concerned and to honor law of the land in word and spirit

Goals and Objectives

Versatile bags manufacturing company have the following goals Financial Goal Non-Financial Goals

FINANCIAL GOALS:
1. Increase revenue at least 40 percent every year;

2. Get more shares in the market;

3. Increase manufacturing capabilities, increase distribution, and introduce new design

in the market.

Non-Financial Goals
1. Enter new geographic market; 2. Introduce new product lines;
3. Develop a successful internet site, while maintain strong relationships with customers; 4. Develop its own conservation program aimed at helping communities raise money to

purchase open space.

Core Competencies
The VBM Company uses its core competencies to achieve competitive advantages in which competitors cannot provide the same as we does. VBM has developed core competencies in:
1. Offering a high quality product whose image is recognizable among consumers; 2. Creating a sense of community among consumers who purchase the product; 3. Our bags basically include Uniqueness, use of good quality material, economical prices.

Among services, we make designs on order as is liked by our customers;

4. Developing reputation among retailers as a reliable manufacturer delivering the

requested numberof products schedule. The company intends to build on these competencies through marketing efforts that increases the number of products as well as distribution outlet.

Situation Analysis
The marketing environment for versatile manufacturing company represents overwhelming opportunities. It also contains some challenges that the company believes it can meet successfully. The SWOT analysis presents a sketch of the companys position in the market place. The SWOT analysis of the company is discussed as under;

SWOT Analysis
SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities and Threats involved in a project or in a business venture. It involves specifying the objectives of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve those objectives.

Strengths
Strength is the characteristics of the business or team that give an advantage over others in the industry.Versatile bags manufacturing company has built some impressive strength while looking forward to new opportunities. Its dedicated founders, the growing number of brand loyal

customers and sound financial management are the strength of the company. Other strengths of the company are as follows: Economical Price: Our bags range from Rs 300 to Rs 500 depending upon the need and requirement of our customers. Therefore all the bags are marketed at affordable prices in addition to maintaining the highest standards. Good Quality: Secondly we believe on good quality product offering highest standards to our ultimate customers. We use best quality jeans, leather and zip stitching etc. In addition, a unique design which not only enhance the beauty of our Bags but also is a source of competitive edge over that of our competitors. Effective customer dealing: In order to market any product one must satisfy his or her customers to its fullest. So, customer satisfaction is the main strength of our company. We have skilled and trained employees who are specialized via professional training to deal effectively and efficiently with our customers and hence provide excellent customer dealing. New designs: Our main strength lies in the uniqueness of our products. We aim at making different and new designs as compared to those already in use. Future anticipation of fashion helps in making the unique designs of bags and hence is liked by majority of our customers.

Weaknesses
Weaknesses are the characteristics that place the firm at a disadvantage relative to others. The weaknesses of our company are: Outlet: The main weakness of our product is that its outlets are accessible to customers in twin cities only and hence people from far areas found difficulties in having access to our products. Small customer base Our target area belongs to customers of middle class only. Our products are not designed to be meant for elite class as we have a small customer base.

No awareness As we step newly in fashion industry therefore our main constraint is that only few people knew about the uniqueness of our bags and a large portion of students are unaware about our products. Based on above mentioned reasons our sales ratio is also less as it was expected.

Opportunities
Opportunities are the external chances to make greater sales or profits in the environment. The VBM Company considers expansion of its product line and entrance into new markets. Following are the opportunities. Few competitors in bags One of the most emerging opportunities related to our bags is that the competition among bags is not very high as only few competitors are investing within schools, colleges and universities with their logo. Therefore the opportunity to excel in that market is quite very high. Affordable prices and good quality to target the market Secondly the most important opportunity to excel in market is that we offer our products at very affordable prices as is wished by our customers. Furthermore our main opportunity to increase future sales is that we are offering the best quality bags within economical range for our utmost clients. Expansion of distribution: Thirdly the most important opportunity is expansion of distribution channel. The distribution of our product is still limited within two cities. So we can easily expand it throughout the country especially in schools and colleges of urban areas.

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Threats
Threats are the external elements in the environment that could cause trouble for the business. The Universal Company can consider the following threats: Locality The main threat to our product is that it is only easily accessible to customers of nearby areas. Therefore people from far areas could not experience our products. This could be a future threat to our sales area.

Adverse government Policies: The adverse policies which are implemented may also affect our production. Relationship with retailers: Relationship with retailers might deteriorate if they believe they face internal competition in the form of internal sales. Less variety Secondly we are only focusing our attention to Student bags only. This could also be a future threat to our products if our competitors switch to other fancy or formal bags.

Competitors and Company Analysis

Today we have a number of competitors which exists in the market. Our competitors are: S Jee Enterprises Jafferjee's Leather Goods Pakistan Our Bags features basically include Uniqueness, use of good quality fabric and economical prices. Our company products are available in schools, colleges and universities. Among services, we make Bags on order as is liked by our customers.

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Target Market
Our primary target market includes Students of schools, colleges and universities. Our ultimate clients are those who are in search of fabulous shoulder bags for themselves. As every boy wishes to have some unique bags therefore they remain in continuous struggle to have some unique bag different from those of others. Therefore our bag particularly is the best optionfor them. They are provided with every type and variety to be selected from those at varying prices and styles. Our company basically aims at providing best standard products at feasible prices. This will not only be helpful in earning customer loyalty but will also be helpful in providing long-term value to our potential customers. Our client includes students, teachers, businessmen who are very careful about their documents, books and stationary.

Marketing Mix
Marketing decisions generally fall into the following four controllable categories: Product Price Place (distribution) Promotion

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These four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response

Product Strategy
Versatile bags currently offer a line of high quality bags which are available in different colors and different designs. The most popular colors for the bags in the market are Black, Grey, and khaki. Over the next three years versatile bags plan to expand the product line and customer may order bags in different colors and different designs. Versatile Bags also wants to expand its product line to offer items such as Brief bags, suitcase, mobile pouches, laptop bags, sports bags, travelling bags, shopping bags, duffel bags, tote bags, daypacks etc. These items would also come in trendy and basic color, with the choice of logos and colors. In addition, every product would bear the VBM logo.

Placement Strategy
Our company uses the following multiple channel of distribution.

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Company

Wholesaler

Retailer

Consumer

Company

Distributor

Retailer

Consumer

Currently, VBM is marketed through regional land local specialty shops scattered in the Rawalpindi and Islamabad. So far, VBM has not been distributed through national and apparel chain. Over the next three years, VBM seeks to expand distribution to retail specialty shops throughout the nation, focusing next on the other cities and regions. In addition, VBM plans to expand online sales by offering the customized product line via internet only, thus distinguishing between internet offerings and specialty shop offerings. Regardless of its expansion plans, VBM intends to monitor and maintain relationship with distribution channel members.

Promotion Strategy
VBM communicates with retailers and consumers about its products in varieties of ways. The VBMs efforts also seek to differentiate its product from those of its competitors. The VBM staff works with retailers to offer short-term sales promotions tied to events and contests. Nontraditional marketing methods that require little cash and a lot of creativity also lend themselves perfectly to VBM. During the coming years, the company plans to engage in the following marketing efforts: Create a VBM tour, in which several employees take turns driving around the country to distribute promotional items such as VBM stickers and discount coupons in the other cities of the country. Attend functions, concerts, mina bazars, annual sports and farewell parties to distribute free key chains, notebooks, color pencils, stickers and VBM shirts or caps.

Pricing Strategy

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As discussed earlier in this plan, VBM products are priced with the competition in mind. The company is not concerned with high prices to signal luxury or prestige, nor is it attempting to achieve the goals of offsetting low prices by selling high quantities of products. Instead, value pricing is practiced so that customers feel comfortable while purchasing. We Price our products to achieve a certain percentage of return on its investment. We Set prices in such a way that increase the volume of sales. VBM usually have the policy of setting medium prices because we are new in market.

How we set the price of product

Prices are set by taking into consideration the following points Manufacturing Cost What competitors are charging Purchasing power of customer

Budget, Schedule and Monitoring

Though our history is short, we have enjoyed a steady increase in sales in the 1st year. Projected sales for the next three years are:

We anticipate continuing operation into foreseeable future, with no plans to exit this market. We plan to increase our presence in market.

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Income Statement:
Versatile Bags Manufacturing Company Income statement For the year ended November 30, 2010.
Sales Less: Cost of goods sold Gross Profit Rs 200,000 110,000 90 ,000 Less: Operating Expense Rent Expense Repair and Maintenance Salary Expense Advertising Expense Transportation Expense Insurance Expense Miscellaneous Expense Depreciation Expense: Machinery Vehicle 3,000 5,000 5,000 2,000 15,000 10,000 5,000 2,000 1,000

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Net Profit

48,000 42,000

Versatile Bags Manufacturing (PVT) LIMITED CO. Balance Sheet For the year ended November 30, 2010
ASSETS: Cash Account Receivable 90,000 20,000

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Prepaid Insurance Prepaid Rent Supplies Machinery Less: Depreciation Vehicle Less: Depreciation Total Assets 100,000 (5,000) 150,000 (3,000) 400,000

12,000 15,000 21,000

95,000

147,000

LIABILITIES & OWNERS EQUITY: Notes payable Accounts payable Salaries payable Total Liabilities OWNER EQUITY: Partners Capital Total 300,000 400,000 20,000 55,000 25,000 100,000

Versatile Bags Manufacturing (PVT) LIMITED CO. Income Statement (Projected) For the next three years

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Sales Less: Cost of goods sold Gross Profit

548,800 300,000 248,800

Less: Operating Expense Rent Expense Repair and Maintenance Salary Expense Advertising Expense Transportation Expense Insurance Expense Miscellaneous Expense Depreciation Expense: Machinery Vehicle Net Profit

20,000 8,000 21,500 15,000 10,000 2,000 6,000

15,000 9,000

24,000 142,300