Marketing Management

Marketing Plan: PURE COLA

Authors
Ahmad Sajjad Shabbir (081346-002)
Sohaib Mehnood (081346-003)
Contents
1 Preface.................................................................................................................................................5
2 Business Plan.......................................................................................................................................6
2.1 Company Summary.....................................................................................................................6
2.2 Company Ownership...................................................................................................................6
2.3 Start-up Summary........................................................................................................................6
2.4 Our Mission.................................................................................................................................6
2.5 Our Vision...................................................................................................................................6
2.6 Goals and Objectives...................................................................................................................7
2.7 Business Philosophy....................................................................................................................7
2.8 Industry Situation.........................................................................................................................7
2.9 Company strengths......................................................................................................................7
3 Marketing Plan....................................................................................................................................8
3.1 Situational Analysis.....................................................................................................................8
3.2 Company Analysis.......................................................................................................................8
3.3 Marketing Research and customer analysis.................................................................................8
Questionnaire......................................................................................................................................9
3.4 Market Demographics................................................................................................................19
3.5 Industry Analysis.......................................................................................................................19
3.6 SWOT analysis..........................................................................................................................19
3.6.1 STRENGTHS:...................................................................................................................19
3.6.2 WEAKNESSES:................................................................................................................20
3.6.3 OPPORTUNITIES:............................................................................................................20
4 Target market and Segmentation.......................................................................................................21
4.1 Segmentation strategy of Pure Cola...........................................................................................21
4.1.1 Demographic Segmentation...............................................................................................21
4.1.2 Psychographic Segmentation.............................................................................................22
5 Marketing Mix of our product...........................................................................................................22
5.1 Product.......................................................................................................................................22
5.2 Price...........................................................................................................................................23
5.3 Promotion..................................................................................................................................23
5.4 Place..........................................................................................................................................23

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 5.5 Distribution Channels................................................................................................................23
6 Pricing Strategies and Programs........................................................................................................24
6.1 Which factors we used to switch the customers?.......................................................................24
6.2 How we develop pricing strategy?.............................................................................................24
6.3 How we implement “Price Cues”?.............................................................................................24
6.3.1 When we use price Cues?..................................................................................................24
6.4 How we set the price?................................................................................................................25
6.5 How we analyze competitors Cost, price, and offers?................................................................25
6.6 Selecting a Price Method...........................................................................................................25
7 Creating Brand Equity.......................................................................................................................26
7.1 Why launch new brand in market?.............................................................................................26
7.2 How we create brand equity in market?.....................................................................................26
7.3 Brands Elements........................................................................................................................26
7.4 Leveraging Secondary Association............................................................................................26
7.5 How we decided for brand extension?.......................................................................................27
8 Advertisement decisions of Pure Cola...............................................................................................27
8.1 ADVERTISEMENT OBJECTIVE............................................................................................27
8.2 Setting of Advertising Budget....................................................................................................27
8.3 Advertisement Media.................................................................................................................27
9 Financials...........................................................................................................................................28
9.1 Advertisement Budget...............................................................................................................28
9.2 ROI on Advertizing Budget.......................................................................................................29
9.3 Monthly Sale forecast for TWO years.......................................................................................30
9.4 Pro Forma Income Statement.....................................................................................................31
10 Bibliography..................................................................................................................................32

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Acknowledgment

At the very outset we would like to thank in our own humble way the Almighty Allah for giving
us the resources, the comprehension and the strength for completing this task.

We are also indebted to our supervisor Mr. Khalil Ahmad Arbi for his guidance and
supervision, which has played a vital role in the completion of this project.

In addition we are thankful to our families who have been supportive during our MSBF work.
We are extremely grateful to our parents who always wanted the best for us and encouraged
us to carry on.

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

Some words for Light House:

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

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

God bless UMT, God Bless you

Ahmad Sajjad Shabbir

Sohaib Mehmood

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1 Preface

Students of MSBF

University of Management and Technology

Mr. Khalil Ahmad Arbi

Resource Person: Marketing Management

University of Management and Technology

Respected Sir,

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

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

Sincerely
Ahmad Sajjad Shabbir (081346-002)

Sohaib Mehmood (081346-003)

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

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

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

2 Business Plan
2.1 Company Summary
Pure cola will be known for selling Soft drinks with 4 different flavored syrups to children and
other all age people in Pakistan

2.2 Company Ownership

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

2.3 Start-up Summary

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

2.4 Our Mission

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

2.5 Our Vision

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

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

Furthermore the company is committed to maintaining good employment opportunities and

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

2.7 Business Philosophy

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

2.8 Industry Situation

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

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

2.9 Company strengths

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

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

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

3.2 Company Analysis

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

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

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

3.3 Marketing Research and customer analysis

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

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

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Questionnaire
Current Facilities & Preferences

1. Do you use soft-drink services in the area?

 Yes
 No

Yes 67

NO 33

Objective

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

Likeness

NO, 33%

YES
NO
, YES,
67%

Findings

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

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2. Which company soft-Drink services do you use (if any)?

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

Coca
Cola 48

Pepsi 27

Amrat 10

Others 15

Objective

Check the consumers most like brand in the market.

Findings

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

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3. What size of soft-Drink do you prefer?

 a) 250ml
 b) 330ml
 c) 400ml
 d) 500ml

40% 250ml

10% 330ml

30% 400ml

20% 500ml

Objective

Check the pack size which people most like to use.

Preference

20%

250ml
330ml 40%

400ml
500ml

30%

10%

Findings

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

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4. What time of day do you use soft-drink?

 a) Before 11am
 b) Between 11am and 2pm
 c) Between 2pm and 6pm
 d) Between 6pm and 10pm
 e) After 10pm

20% Before 11am

40% Between 11am & 2pm

10% Between 2am & 6pm

10% Between 6am & 10pm

20% After 10pm

Objective

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

Findings

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

5. How often do you use soft-drink services?

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  a) Daily
 b) Once in a week
 c) Twice in a week
 d) Once in a month
 e) Once in a year

46% Daily

27% Once in a week

12.3% Twice in a Week

9.5% Once in a Month

5.2% Once in a year

Objective

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

Findings

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

6. How much are you prepared to pay for Soft-drink?

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  a) Less than Rs.10/-
 b) Between Rs.10 – Rs.13/-
 c) Between Rs.13 – Rs.15/-
 d) Over Rs.15/-

33% Less than Rs.10/-

41% B/W Rs.10 - Rs.13/-

20% B/W Rs.13 - Rs.15/-

6% Over Rs.15/-

Objective

We check how much people spent on soft drinks.

Findings

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

7. Would you like to buy any new company soft-drink?

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  Yes
 No
 Some times

39 Yes

47 No

14 Some Times

Objective

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

Findings

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

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8. How far do you live from the stall?

 a) Less than half-a-mile

 b) Half-a-mile to two-miles
 c) Over two-miles

51 Less than half-a-mile

33 Half-a-mile to two miles

16 Over two miles

Objective

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

Findings

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

10. How often do you pass the stall?

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  a) Every day
 b) Twice a week
 c) Once a week
 d) Once a month

47 Every day

22 Twice a week

17 Once a week

14 Once a month

Objective

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

Pass From Stall

50
45
40
35 Pass From Stall
30
25
20
15
Every day 10
Twice a week 5
Once a week 0
Once a month

Findings

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

11. Your age group?

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  a) Up to 18
 b) Between 18 and 30
 c) Between 30 and 50
 d) Over 50

41 Up to 18

Between 18 &
34 30

Between 30 &
18 50

7 Over 50

Objective

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

Age Group

45
40
35
Age Group
30
25
20
15
Up to 18 10
Between 18 & 30 5
Between 18 & 50 0
Over 50

Findings

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

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3.4 Market Demographics

 POPULATION: 176,242,949 (July, 2009 EST.)

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

3.5 Industry Analysis

 POPULATION: 176,242,949 (July, 2009 EST.)

 CHILDREN: 37.2% (65,607,612)
 ADULTS: 62.8% (110,680,572)
 CHILDREN EQUITY: 60% (14,643,619)
 ADULT EQUITY: 40% (27,802,960)
 TOTAL TARGET MARKET: 42,446,579

3.6 SWOT analysis

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

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

3.6.2 WEAKNESSES:
Costs

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

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

3.6.3.1 2.6.4 THREATS:

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

4 Target market and Segmentation

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

 Undifferentiated marketing. (Mass Marketing)

 Differentiated marketing. (Segmented Marketing)
 Concentrated marketing. (Segmented Marketing, small segment)

4.1 Segmentation strategy of Pure Cola

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

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

4.1.1 Demographic Segmentation

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

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

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

5 Marketing Mix of our product

There are 4 P’s of marketing mix which we implement on our products.

 Product
 Price
 Promotion
 Place

5.1 Product
 Product Variety
We provide it in

 Pure cola,
 Pure lemon,
 Pure range
 Pure Diet

 Quality
We maintain quality for all consumers.

 Design
We design bottle in RGB (REGULAR GLASS BOTTLE).

 Brand name
Our brand name is “pure Cola”

 Packaging
It will provide in the pack of 24 bottles.

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

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5.2 Price
 List price:
Price of our product is Rs.12/- per bottle.

 Discount:
We will provide discount as per market conditions.

 Allowance:
We provide allowances to our retail & wholesaler customers.

 Payment Period & Credit Customers

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

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

 EYE CATCHING POSITION

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

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

5.5 Distribution Channels

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

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6 Pricing Strategies and Programs
6.1 Which factors we used to switch the customers?
Customers switching is a big problem. We will use these factors which help us to retrieve our
customers.
 Pricing
 Inconvenience
 Core service
 Matching Competition activities
 Resolve Ethical problems

6.2 How we develop pricing strategy?

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

6.3 How we implement “Price Cues”?

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

A) Left to right pricing

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

B) Odd number discount perception

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

6.3.1 When we use price Cues?

We use price cues when

A) Customers purchase item infrequently
B) Customers are new

A) Customers purchase item infrequently

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

B) Customers are New

We used odd number discounting perception system on price cues.

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6.4 How we set the price?
We use these methods to determine the prices

A) Select the price Objective

B) Determine demand
C) Estimate cost
D) Analyze competitor price mix
E) Select pricing method
F) Select final price

We use two ways to set the prices

A) Select the price Objective

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

B) Determine demand
We set the price by determine the demand in market.

6.5 How we analyze competitors Cost, price, and offers?

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

 We evaluate competitor customers worth

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

6.6 Selecting a Price Method

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

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

Unit Cost = Rs 8 per unit

Per Unit Price =Rs 12

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

7.2 How we create brand equity in market?

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

7.3 Brands Elements

We develop these types of brands elements which will

 Memorable
 Meaningful
 Likable
 Adaptable

7.4 Leveraging Secondary Association

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

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

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

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

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

 500ml
 1.5ml
 2.25ml

8 Advertisement decisions of Pure Cola

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

8.1 ADVERTISEMENT OBJECTIVE

Creating awareness about company and its Products

8.2 Setting of Advertising Budget

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

8.3 Advertisement Media

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

Pure Cola Company will use different mediums

 Print media
 TV commercial
 Billboards and holdings

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9 Financials
9.1 Advertisement Budget

We will spend 20 Million each year on our advertisement. We will spend major portion of our
advertisement budget in the Months of March, April, May, June, July, August and September.

Detail segregation of marketing expanses:

Medium Budgeted Investment % of Advertisement Budget

TV Adds 8 Million 40%
Billboards 5 Million 25%
Print Media Adds 2 Million 10%
Sports Sponsors 4 Million 20%
Awareness through Morning Shows 1 Million 5%

Budget
Advertisement

TV Adds
Billboards
Print Media adds
awareness through Morning
shows
Sport Sponsors
9.2 R
O
I

on Advertizing Budget

Year 2011 Year 2012

Total Units Sold 5,000,000 Units 7,084,000 Units
Price per Unit Rs 12 Rs 12
Total Revenue Rs 60,000,000 Rs 85,008,000

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Advertisement Cost Rs 10,000,000 Rs 10,000,000
ROI 500% 750%

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 9.3 Monthly Sale forecast for TWO years

24 Month Sales Forecast

Fiscal Year 1 2011

2011
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals
Product Name Pure Cola
Units 100,000 100,000 100,000 100,000 520,000 800,000 850,000 700,000 500,000 510,000 420,000 300,000 5,000,000
Selling Price 12 12 12 12 12 12 12 12 12 12 12 12
Total Sales 1,200,000 1,200,000 1,200,000 1,200,000 6,240,000 9,600,000 10,200,000 8,400,000 6,000,000 6,120,000 5,040,000 3,600,000 60,000,000
% of Total 2.00% 2.00% 2.00% 2.00% 10.40% 16.00% 17.00% 14.00% 10.00% 10.20% 8.40% 6.00% 100.00%

2012
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Totals

Units 350,000 400,000 500,000 600,000 700,000 800,000 950,000 700,000 558,000 590,000 486,000 450,000 7,084,000
Selling Price 12 12 12 12 12 12 12 12 12 12 12 12
Total Sales 4,200,000 4,800,000 6,000,000 7,200,000 8,400,000 9,600,000 11,400,000 8,400,000 6,696,000 7,080,000 5,832,000 5,400,000 85,008,000
% of Total 4.94% 5.65% 7.06% 8.47% 9.88% 11.29% 13.41% 9.88% 7.88% 8.33% 6.86% 6.35% 100.00%

24 Month Sales Forecast

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
0 1 2 3 4 5 6 7 8 9 10 11
90,000,000 2011 2012
80,000,000 5,000,000 7,084,000
Units
70,000,000
Total Sales ########## ##########
60,000,000
50,000,000 ` Units
40,000,000 Total Sales
30,000,000
20,000,000
10,000,000
0
2011 2012

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9.4 Pro Forma Income Statement

Pro Forma Income Statement

Pure Cola (PVT) Ltd

Year 2011 Year 2012

Amount % of Sales Amount % of Sales
REVENUE
Gross Sales $60,000,000 $85,000,000

Net Sales $60,000,000 100% $85,000,000 100%

COST OF SALES
Inventory $20,000,000 33% $5,000,000 6%
Plus goods purchased / manufactured 5,000,000 8% 25,000,000 29%
Total Goods Available $25,000,000 42% $30,000,000 35%
Less ending inventory 5,000,000 8% 5,000,000 6%
Total Cost of Goods Sold $20,000,000 33% $25,000,000 29%
Gross Profit (Loss) $40,000,000 67% $60,000,000 71%

OPERATING EXPENSES
Selling
Salaries and wages $2,000,000 3% $4,000,000 5%
Commissions 500,000 1% 1,000,000 1%
Advertising 10,000,000 17% 15,000,000 18%
Depreciation 1,000,000 2% 1,000,000 1%
Other 500,000 1% 800,000 1%
Total Selling Expenses $14,000,000 23% $21,800,000 26%
General/Administrative
Salaries and wages $1,000,000 2% $1,000,000 1%
Employee benefits 100,000 0% 100,000 0%
Payroll taxes 50,000 0% 50,000 0%
Insurance 200,000 0% 200,000 0%
Rent 0 0% 0 0%
Utilities 1,000,000 2% 1,000,000 1%
Depreciation & amortization 0 0% 0 0%
Office supplies 200,000 0% 250,000 0%
Travel & entertainment 0 0% 4 0%
Postage 50,000 0% 70,000 0%
Equipment maintenance & rental 100,000 0% 120,000 0%
Interest 0 0% 0 0%
Furniture & equipment 0 0% 0 0%
Total General/Administrative Expenses $2,700,000 5% $2,790,004 3%
Total Operating Expenses $16,700,000 28% $24,590,004 29%
Net Income Before Taxes $23,300,000 39% $35,409,996 42%
Taxes on income 5,126,000 9% 5,592,000 7%
Net Income After Taxes $18,174,000 30% $29,817,996 35%
Extraordinary gain or loss $0 0% $0 0%
Income tax on extraordinary gain 0 0% 0 0%
NET INCOME (LOSS) $18,174,000 30% $29,817,996 35%

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10 Bibliography
http://www.census.gov.pk/. (2009). Population census of Pakistan. Retrieved April Mondday, 2011, from
http://www.census.gov.pk/

http://www.jaxworks.com. (2010, April Monday). Small Business Spread sheet Factory . Retrieved April
Tuesday, 2011, from Jax Works Small Business Spread sheet Factory: http://www.jaxworks.com

LIMITED, P. B. (n.d.).

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