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Contents
Topics Pg. #

Introduction 1
Explanation of Innovation 2
Need gap analysis 2
Fulfilling the Need 3
Product Qualities (Differentiation) 3
Market Situation – Expected Market Size and Potential 4
Mission Statement 5
Vision 5
Goal 5
Market Trend 5
Competitor analysis 6
Indirect competitor 6
Substitute Competitors 6
Placement Strategy: 7
Brand Name 7
Logo 7
Trademark 8
FAB analysis: 9
Quality function deployment quality statement: 10
Market Segmentation: 11
Artesian advertising strategy 15
Understanding the Psycho-Dynamics of the market: 16
Advertising objective 17
Campaign theme 17
Reach 18
Frequency 18
Media Vehicl 19
Proper Budget Allocation Advertising 19
Slogan 21
USP 21
Push strategy 21
Promotional Materials 21
Price 22
Marketing Skimming: 22
Key People with Specific Skills 24
Physical evidence 24
Land and Building 25
Market entry strategy: 25
Quantitative SWOT matrix analysis: 27
Matching the SWOT matrix: 28
Financial Analysis 30
Ratios for march: 34
Conclusion 34
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Introduction

Artesian Bread is a name that has come to signify quality and freshness in bread
products. The enterprise, Artesian Bread will operate six plants throughout
Pakistan. Initially we are going to launch it in Lahore having Factory in Muridkey.
The Bread distribution network comprises rent 15 vehicles that deliver Artesian to
more than 200 retail outlets daily, making it one of the largest distribution
networks for any product in the country customers are located in major
metropolitan areas, secondary metropolitan areas and rural areas. The fleet will
run approximately 500KM each day to deliver fresh bread. Peshawar. Multan
Karachi Islamabad Faisalabad will be our future destinations to launch our
product there.

Artesian Bread's management team recognized early on that to be a contender in

the baking industry the company would need to comply with international
processing standards. Company is about to developed a relationship with
Campden & Chorlywood Food research Association, Gloucestershire, UK. The
associations will work with Artesian Bread to bring it in line with globally accepted
production, technology, machinery and formulation standards the hard work and
with this much dedication the company will struggle to receive its ISO 9001:
certificate.

For purpose of standardization, the company will bring itself in line with
international standards of production, technology, machinery and formulation. All
the Artesian Bread plants boast of the latest machinery used in the bread-making
process. They will be managed by senior food technologists with decades of
experience, while those manning the machinery will be provided on the job
training in congenial working conditions.
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Taking a responsible place in society, the company is committed to the uplift and
development of the society as a whole, and participates in sports and social
welfare activities.

We hope to continue to develop and maintain this relation in the future.

Explanation of Innovation
Our product is unique in sense that it provides with unique flavored in bread first
time in Pakistan. Currently Artesian have three flavors of breads
• Chocolate,
• Vanilla
• Strawberry.

It is also at the same time a product for the health conscious people as well.

The bread industry in Pakistan has seen many changes in the last twenty-five
years. It has emerged as a small-scale bakery processing industry to numerous
industrial bread making units all over Pakistan. The bread industry in Pakistan is
flourishing very quickly and bread products are gaining much popularity. Bread
has been accepted as a popular substitute of
• Rice,
• Naan,
• Paratha. .

Need GAP analysis

Consumers are increasingly concerned about their health and are well aware of
the relationship between nutritious food and optimal health. Various concerns
have caused consumers to monitor their dietary habits closely. The growing
media coverage on health, the rising incidence of health conditions (obesity,
diabetes and cardiac problems), concerns over physical appearance, changing
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lifestyle and also soaring costs of healthcare have all contributed to the demand
for healthier bakery products. In addition, the aging baby boomer population has
had a specific effect in increasing the demand for healthy foods. Some popular
trends in the market are the introduction of low/light, functional, natural and
organic products, as described below.

Fulfilling the Need

Every day, before the sun rises, we begin making our bread from scratch. The
dough is made with natural whole grains and unbleached flour, with no
preservatives. Most of the breads are leavened with a natural sourdough starter
using a long, slow fermentation time. Every loaf is formed by hand and left to rise
naturally. The breads are baked throughout the day, with patience and care, on a
traditional stone hearth.

This is an Old World style of baking, perfected over centuries. It is a process that
brings the most flavors out of the bread creating chewy loaves with a crunchy,
flavorful crust. We bake dozen varieties each day, and all of our breads are low-
fat or fat-free.

Product Qualities (Differentiation)

Our product provides with following type of health related benefits which provides
the better health.

Flavored Bread –
the unfitness of our bread is that it is flavored bread. We are going to
provide it in three different flavors i.e. Chocolate, Vanilla and Strawberry.

Low / Light Bread –

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our bread is with reduced fat and carbohydrates. With the growing
incidence of obesity and popularity of diets low calorie foods have gained
immense popularity which is our core capability.

Functional Bread –
In recent years, enhancement of the nutritional profile in bread products is
a key trend that has gained a great deal of momentum. We will also trying
to enhance the nutritional value of traditional bread products through the
addition of functional ingredients, such as omega-3, multigrain,
multivitamins etc.

Natural and Organic Bread-

Increasing health awareness and concern over the consumption of
artificial ingredients have fuelled the demand for natural products. Bread
products that contain all natural ingredients are likely to thrive in this
competitive market. Organic bread is yet another category gaining impetus
in recent times, and the products are clearly labeled to draw attention to
their organic nature. We will also have a look over it.

Pleasure-
In addition to healthier products, consumers also are purchasing products
that satisfy their taste buds. The taste enjoyment factor is vital in the
marketplace and we will be focusing on this more deeply. With lifestyles
becoming increasingly stressful, consumers may indulge in food for
comfort eating purposes. Indulgence/luxury products are becoming more
pronounced as a key trend in the bread industry. Consumers increasingly
seek for premium, gourmet and exotic products to satisfy their desire to
indulge

Market Situation – Expected Market Size and Potential

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Only 5 % population of Pakistan is using the packed bread so rest of the market
is still to be captured. Here people are wiling to pay extra amount for the
differentiated product. Our main focus wood be

Mission Statement
"This is a family company selling traditionally baked bread with a freshness and
quality you really can taste".

Vision
Our vision is to become Pakistan's favorite bread this is underpinned by our
dedication to continued improvement across all areas of the business.

We are committed to developing the bread market and working with our
customers, that is why we invest a lot of time and money to understand our
consumer's needs.

Goal
Our goal is to ensure that important values such as quality, freshness, and
service are delivered to our consumers in the 21st Century. For us this isn't just a
business. It's a way of life.
The task ahead is to concentrate on making the cake bigger rather than fighting
for a bigger piece of the existing cake.

Market Trend
Market is currently not using up to dated technology and generally companies are
interested making the beads that remain at low cost. There is great deal of
competition in the market in a congested area of the market. There is a huge
market available where one can hit the target market.
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Currently, 5% of the total population of Pakistan consumes packaged bread. The

major factors for such a low percentage of people consuming bread are mostly
economical and cultural. Pakistani diet consists of many substitutes for bread,
which are cheaper and preferred over bread by a majority of the population. The
political scenario as well as the legal scenario is not posing any threat to the
bread industry growth apart from the price restrictions, which actually fixed by
negotiations between the government of Sindh and the committee of bread-
making.

Competitor analysis
Competitor analysis in marketing and strategic management is an assessment of
the strengths and weaknesses of current and potential competitors. This analysis
provides both an offensive and defensive strategic context through which to
identify opportunities and threats. Competitor profiling combines all of the
relevant sources of competitor analysis into one framework in the support of
efficient and effective strategy formulation, implementation, monitoring and
adjustment.

Indirect competitor
Indirect competitors of Flavored Bread are:
• Different cakes
• Biscuits
• Cookies
• Pastries, etc

Substitute Competitors
A substitute competitor is any competitor that fills the same buyer need you fill but
fills it in a different way. The substitute competitor of Flavored Bread is:

• Dawn Bread
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• Gourmet Bread
• Cakes and bakes
• Different bakery breads
• Vita Bread
• Bunny

Placement Strategy
• Brand Name
• Trademark
• Logo

Brand Name
Flavored Bread a name that has come to signify quality and freshness in bread
products. The purpose of the research is to analyze the current state on the
baked goods market. The main tendencies and forecast the possible market
growth. Prior to the establishment of flavored Bread, will become largest producer
of bread products is the public sector. However, this sector could not cope with
the demands of the consumer and this when, perceiving a change in the eating
habits of Pakistanis, Flavored Bread will envisioned. Flavored Bread built-up a
reputation for freshness, quality and taste. Creating awareness plus a demand for
bread products, and started its production in Lahore.

Logo
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Trademark
We have registered our brand in ACCP office with registration number 89554.
Now we have legalized it. We have registered our company by the name of
ARTESIAN & Co.

We will give step by step guide to SMEs in Pakistan about protecting Trademark
in Pakistan as well as abroad (especially for exporters), its initial protection tenure
renewal able till existence of the SME, cost of registration and offices where
applications can be submitted. We will also highlights that mostly applications are
rejected on the basis of it being a generic name (like using trademark Bread to
sell Bread), or a descriptive term (like the mark SWEET for marketing
chocolates), or a deceptive trademarks (e.g. marketing margarine under
trademark featuring COW), or a shape of product, which should be avoided. We
also provides check list for SMEs to consider, prior to selecting a Trademark.
Information regarding popular types of trademarks i.e., service marks (like
Business Plus), collective marks certification marks well known marks.

Distribution:
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Artesian distribute on network will be indirect and comprise of over two hundred
company owned vehicles in a distribution system spread all over Pakistan. On a
daily basis, we will distribute our goods to over a 200 retail outlets. We will
distribute in almost all the major metropolitan areas, secondary metropolitan
areas as well as the rural parts of the country, later.

Channels of Distribution:

Channels of distribution will be intensive because Artesian will operate six plants
throughout Pakistan. The Bakery's distribution network will rent more than 50
vehicles which will deliver baked products to more than 200 retail outlets, and will
making it one of the largest distribution networks for any product in the country
customers are located in major metropolitan areas, secondary metropolitan areas
and rural areas. We will develop a manufacturing process utilizing state of the art
bakery machinery combining it with locally developed equipment. This unique
combination resulted in products which are closer to the actual taste and form
that we make at home.

The Product Analysis

FAB analysis:

Features:
A common scenario of Flavored Bread in selling is for the sales person to extol
the virtues of the product they are selling by demonstrating the assorted
features that it has.
Another variant of the flavored bread’s features trap will be when the customer
comes in with a checklist of the features that they want. Anything that does not
have all features is immediately rejected, whilst products with extra features are
ignored. When they have narrowed down their choices to a set of products that
have all the features they want, then they choose solely on price.
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Benefits:
Benefits of Flavored Bread will be what the customer gains by using the
product. Selling on benefits thus sells to what they really want, not what they
say they want or what you want to sell. With benefits, consumer will get them
excited and emotionally engaged.

Attributes:
Attributes are intangibles that are associated with the product, not the person
(and hence are not yet benefits) Falvored bread have many attributes whilst
others have far fewer. Our product specifications will be according to the
customer needs. Flavored bread will be useful for stepping-stone between the
physical product and the benefits that the person actually receives and can be
used in a sales pitch as such.

Quality function deployment quality statement:

Flour: Hard wheat flour, or bread flour, is preferred for yeast breads, although
soft or all-purpose flours may be used successfully if the procedure is adapted to
the type of flour. Bread flour has a high gluten (wheat protein) content and
thorough kneading is necessary to develop the gluten so it can hold up a loaf of
bread. The gluten is elastic and stretches as the yeast grows and gives off gas,
making the bread light in texture.

Soft wheat or pastry flour is a weaker flour because it does not contain as much
gluten; therefore, bread made with it needs less kneading than bread made with
bread flour. A blend of the two flours requires a moderate amount of handling to
properly develop the gluten. Over-kneading of doughs from any type of flour may
injure the baking quality of the gluten and produce a bread of poor texture and
volume.
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Bread may be made entirely of whole-wheat flour or in combination with white

flour. A mixture of white and whole wheat flours makes a lighter loaf than whole
wheat alone, but the nutritive value increases as the increased amount of whole
wheat flour is used.

Liquid: Water, potato water, milk or other liquids may be used in making bread.
The bread will be whiter in color and have greater food value if milk is used. Both
milk and potato water prevent bread from becoming stale so rapidly as bread in
which water is the only liquid.

Yeast: Because yeast is very small plants, it must be kept fresh and active.
Yeast may be bought in dry granulated form or compressed cakes or grown at
home in the form of "starter" or "liquid yeast".

Fat: The fat in dough makes the bread tenderer and increases its keeping
qualities. Any high quality cooking fat is satisfactory.

Sugar: Yeast plants grow quickly in the presence of a small amount of sugar as
it is food for their growth. A golden-brown color will be given to the crust by the
use of sugar.

Salt: Gluten is made stronger by the salt. Flavor is also improved.

Quantity:

2 3/4 c. liquid
1/2 to 1 ounce (1 to 2 packages or cakes) yeast
3 tbsp. sugar
4 tsp. salt
2 tbsp. fat
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About 9 cups sifted hard-wheat flour. (More all-purpose or soft wheat flour
will be needed.)

Market Segmentation:

Market Segmentation is an effort to increase a company’s precision marketing. A

market consists of a large identifiable group within a market with similar wants,
purchasing power, geographical location, buying attitude, or buying habits. We
have done the segmentation on the basis of the following variables:

Demographic Segmentation

Age, Income, Social Class & Occupation

Demographics
Gender: flavored bread can be use by males and females as well
Income: Flavored is basically for middle upper class people and it will be easily
affordable for all type of these people.
Age: Flavored bread will be useful at every stage of life. Young generations and
older ones can also use this delicious bread

Geographic
Area: Flavored bread is located in Lahore and it is easily available in all super
stores and general stores.

Psychographic: flavored bread is according to the customer needs and demands.

It consists of natural flavors like chocolate, vanilla and strawberry.

Behavioral segmentation
Occasions, Benefits, Usage Rate & Attitude
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Usage rate
Flavored bread is particularly use by young generations who are very fond of
flavors like generation X they love chocolates and different flavors products.
Usage rate will be high because of these young generations.
Benefits: it consist of Vitamin D and A so it is quite notorious and have energy as
well

Targeting
After segmenting the market we are targeting the following segments:

Income Groups
We will be targeting all income groups who should afford easily. Flavored bread,
being an established brand with mass appeal and cost effective pricing, it will not
discriminate between income groups.

Youth
A huge potential market for this bread it lies with youth whom we will be
specifically targeting road shows to be held as part of the ‘Add Color’ campaign.

Travelers
It is also available in mini-size factor, so it will be highly convenient to carry along
during large journeys or trips. This is why it will be targeted at travelers as well.

Promotion Strategies
Product position Strategy.
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Positioning is what the customer believes about your product’s value, features,
and benefits; it is a comparison to the other available alternatives offered by the
competition. These beliefs tend to based on customer experiences and evidence,
rather than awareness created by advertising or promotion.

Marketers manage product positioning by focusing their marketing activities on a

positioning strategy. Pricing, promotion, channels of distribution, and advertising
all are geared to maximize the chosen positioning strategy.

Basic strategies for product positioning that we have used:

1. By attribute or benefit
The flavors that make you feel different. It tastes great and that it is rich.

2. By use or application
The different tastes from the ordinary bread. Use it with butter or eat the
simple loaf.

3. By user
Every one who wants to have a “different taste” may have it.

4. By product or service class

Artesian bread will competes as an alternative to the ordinary breads. It is
positioned as a lower cost and healthier alternative to the ordinary bread,
while it provides better taste and healthy ingredients.

5. By price or quality
Artesian wants you to believe that their flavor bread is of the highest quality.
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Positioning is what the customer believes and not what the provider wants them
to believe. Positioning can change due the counter measures taken at the
competition. Managing your product positioning requires that you know your
customer and that you understand your competition; generally, this is the job of
market research not just what the entrepreneur thinks is true.

Advertising strategy
There are two major parts to an advertising strategy.

1) Assessment.
• What's going on in the market, what’s the history, the current situation?
• What are the major trends in the market?
• What's the future looking like? (With the product. With consumer
attitudes.)

2) Action
• What should your customer do about the most significant opportunities or
problems presented by the situation?
• What should to do with the brand?
• With direct marketing.
• With the way the company is positioned.

A SWOT analysis helps in figure out the "What's going on" part. And figure it out
quickly.

Artesian Advertising Strategies are:

A) Position the product:

"Because we are worth it."
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B) Investing in creating a stronger brand personality:

It will base on an upscale, character that people will aspire to associate with.

C) Using the Internet / Web site:

Currently Artesian don’t have any Web site but it will have an internet asses and
web site in future to target and sell younger buyers, new buyers, before they have
established a product.

You can also see that the ad strategy deals with the big strategic
issues:
• Branding,
• Positioning,
• Media.

Artesian is a new in the world of breads because it is just not that ordinary bread
which has that old milky or simple bread taste. It is different from the traditional
breads because it has a flavor.

We have just launched Artesian in Lahore and we want it to be in every house,

every restaurant, where there is its need. And it does so with simple action
statements describing what you intend to accomplish.

Understanding the Psycho-Dynamics of the market:

What’s going on inside the brains of buyers, of perspective customers? It
includes, but is not limited to, Consumer Involvement Theory (CIT).
• How the consumer relates to the purchase:
• Rational to emotional. High to low involvement. People probably buy the
same brand of breads with a mindless motion at the market. Because it is
priced.
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But besides Consumer Involvement Theory (CIT), there are likely other issues,
perhaps more important issues, such as why people buy the other brand bread:

“People may think that the ordinary bread is of higher quality or more good in
taste or more healthier products.”

Or perhaps it's not so much what people think about competitors, but what they
think about our customer: "I don't know if it will be available in the market easily."

Psycho-Dynamics is everything. It’s all that stuff rattling around between the ears
of likely customers. The thoughts, feelings and ever-changing prejudices that
influence purchase decisions. That's the Psycho-Dynamics of the market. And it
is always changing. Knowing exactly what you want the advertising to
accomplish.

Above the line sales promotion

Artesian is using above the line (ATL) sales promotion currently, that is Artesian
will advertise through media such as;
• TV
• Radio
• Newspaper
• Magazines
• Broachers
• Banners

To promote the brand. Major uses include television, radio, and newspaper
advertising and banners ads on different squares (chowks) in the city. This type of
communication is conventional in nature and is considered impersonal to
customers.
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Advertising objective
Artesian has clear and specific aim of an advertising or commercial, such as

• To earn profits
• To compare,
• To gain attention,
• To inform,
• To persuade, or
• To remind our customers about our product.

Campaign theme
The Currently campaign themes of Artesian is developed with the intention of
being used for a substantial period of nine months but it might be short lived or
extended due to factors such as being ineffective or market conditions.

Reach
60% of the television viewers, 70% of radio users, 60 % of radio users and 90%
of news paper readers should be exposed to the ads or commercials which are
on media and media schedule within a period of four months in the big cities of
Pakistan such as;
• Karachi,
• Lahore,
• Islamabad,
• Faisalabad,
• Peshawar.

With the time and market conditions these ratios can be reviewed according to
the needs.
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Frequency
The frequency in the beginning will be high. It will keep high for some months for
the period after the soft launch and later it can be decrease. There will be
changes in the frequency with the time and market conditions.

Media Vehicle
The print and electronic medium employed in an advertising campaign used by
Artesian is as follow.

ELECTRONIC MEDIA PRINT MEDIA

TV RADIO NEWS PAPER MAGZINES BILLBORD
PTV FM 100 THE NEWS YOUNG ALLAH HO
WORLD CHOWK
GEO TV FM 106.2 DAWN SUNDAY KALMA
MAGZINE CHOWK
AJ 89 FM JANG AKHBAR-E- MUSLIM
JAHAN TOWN MUR
A-TV FM 101 KHABRAIN US MAZANG
CHOWK
ARY FM 99 DAILY TIMES MAG MALL ROAD
NAWA-E- MM ALAM
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WAQAT ROAD
DEFENCE
DUBAI
CHOWK

Proper Budget Allocation Advertising

In order to keep the advertising budget in line with promotional and marketing
goals Artesian have focus on the followings:

• our target consumer are householders (income 10000 or above), bakers

and Restaurants
• Those who are interested in change in taste and are health conscious will
be interested in Artesian Bread advertisements.
• Is the media the advertiser is considering able to reach the target
consumer?
• The product lends itself to rational appeal.
• How much profit is earned for each Rupee spent on advertising?

All these things give Artesian advertiser are provided with an idea of the market
conditions. Thus, how best to advertise within these conditions. Once this
analysis of the market situation is complete, an advertiser has to decide how the
money dedicated to advertising is to be allocated.

Channel ESTIMATED Channel ESTIMATED

COST PER AD COST PER AD
PTV 900000 FM 100 22000
GEO TV 1000000 FM 101 18500
ARY 950000 FM 99 19500
Total Budget 2850000 Total Budget 60000
MAGZINES COST PER AD
YOUNG 35000
NEWS PAPER ESTIMATED
WORLD
COST PER AD
SUNDAY 50000
THE NEWS 55000
DAWNMAGZINE 65000
JANG US 50000 35000
Total Budget
Total Budget170000 120000
 COST PER AD
BILLBORD
AND SIZE
ALLAH HO 22
40000
CHOWK
KALMA
100000
CHOWK
MALL ROAD 100000
MM ALAM
70000
ROAD
DEFENCE 60000
Total Budget 370000

Slogan
Artesian “Discover a Healthier Slice Of Life!”

USP
Artesian “The bread which build strong bodies and which has the flavor of your
choice.”

Push strategy
A push strategy is used by Artesian because it is a new product which is unknown
to the consumer. As there is no consumer demand in the product launch, the
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product and the information are "pushed" to the consumer by distribution and
promotion.

Promotional Materials
Some of the promotional materials are as follow:

Point of sale (POS) Terminals

Artesian has place different check out counters in big general stores like AL-
FATEH, Pace and HKB. Plus they have placed very different and unique and
stylish type of racks to the shops, which are very attractive and heart appealing.

Participation in Trade Fairs and Exhibitions:

Artesian has stalls in the different Exhibitions held in different schools,
universities and cities. Where they sell and tell the consumers about the product
that is the flavor bread. Also in those stalls they are using the flavored bread
making different types of sandwiches to tell the users about the utility and
benefits of Artesian Bread.

Broachers and Leaflets

Artesian has very attractive and appealing broachers which Artesian have
distributed with the news papers and they have also placed it on the cash
counters in different stores. Plus, Artesian are now having a man standing on the
entrance of big shopping malls in the cities.

Banner & Hoardings:

Artesian has placed banners on different squares in the city and they have the
hoarding placed on the malls and stalls in the exhibitions.

Price
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Price is not just the number or tag on the product. But it is the most important
thing.

Marketing Skimming:
Artesian is using Price skimming strategy. It is a pricing strategy in which a
marketer sets a relatively high price for a product or service at first, and then
lowers the price over time. It is a sequential version of price discrimination and
yield management. It allows the firm to recover its sunk costs quickly before
competition steps in and lowers the market price.

Psychological Pricing:
Artesian is selling at PRS.50. so they are not using the Psychological pricing
currently. Retail prices are often expressed as odd prices: a little less than a
round number, e.g. PRS19.99 instead of $20. Psychological pricing is a theory in
marketing that these prices have a psychological impact that drives demand
greater than would be expected if consumers were perfectly rational.
Psychological pricing is one cause of price points.

Computing price method

Cost-plus pricing
Cost-plus pricing is a pricing method used by Artesian. It is used primarily
because it is easy to calculate and requires little information. There are several
varieties, but the common thread in all of them is that one first calculates the cost
of the product, and then includes an additional amount to represent profit.

The method determines the price of a product or service that uses direct costs,
indirect costs, and fixed costs whether related to the production and sale of the
product or service or not. These costs are converted to per unit costs for the
product and then a predetermined percentage of these costs are added to
provide a profit margin.
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Price Elasticity and Customer sensitivity

Price Elasticity:
It is percentage change in quantity demanded as per the percentage change in
price of the same commodity. The price elasticity of demand is a measure of the
sensitivity of quantity demanded to changes in price. It is measured as elasticity
that is it measures the relationship as the ratio of percentage changes between
quantity demanded of a good and changes in its price.

In simpler words, demand for a product can be said to be very inelastic if

consumers will pay almost any price for the product, and very elastic if
consumers will only pay a certain price, or a narrow range of prices, for the
product.
Inelastic demand means a producer can raise prices without much hurting
demand for its product, and elastic demand means that consumers are sensitive
to the price at which a product is sold and will not buy it if the price rises by what
they consider too much.

Demand for bread is elastic because as the price of this flavor bread increases,
there are many substitutions which consumers may switch to.

Customer sensitivity:
Customers are very sensitive and they want fresh bread in the breakfast and if
they don’t get it then they might dislike the product because of the availability.

Discounts and Rebates

Artesian in its soft launch of its product will provide special offer which is buy two
artesian bread and get one small absolutely free.

Key People with Specific Skills

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We have worker who have decades of experience in bread industry. We have

contracts with them to work with us and on our formula.

Physical evidence
The site for the factory is in Muridkey where we can visit to see the desired place.
Exact address is 10 km Sheikhupura road GT road Muridkey.

Land and Building

We will purchase our land in Muridkey for factory. Further detail is given in the
Gant chart. We have cash in hand for this acquiring.

Location and side details

It is located in industrial area of Muridkey where other industries are situated. It is
regarded as the industrial are. We are going to have 6 Acres. Labor is easily
available there at a cheaper cost and raw material is also available there. It is
having all the required facilities need for the bread industry.

Market entry strategy:

1. Guerilla attack:

We will first use guerilla strategy to launch our innovative product.

We will offers different selling offer to the market so that we can
capture market share. We will set price of our product as low as
possible. And give also extra benefit like availability of product as
near to the consumer.
2. Soft launch strategy:
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We will first launch our product to the discounted shops so that we

can check our product’s demand in market. This step tells us about
the weekly sales of our bread.
3. official launch strategy:

After the 3 weeks of soft launch we will launch our product officially
in big market. But before it we will create awareness among the
people of our product. We will set our product in every self of every
good and well known shop.
4. Event marketing at launch stage:

Sponsoring cricket matches:

Cricket the most sought after; watched & played game in Pakistan .the game of
cricket has been owned by various brands in the industry for the promotion of
their products over a period of time. It has ranged from tobacco to lubricants to
communication companies to banks to airlines & lately to the beverage industry.
The competition has become tougher & tougher as the time has progressed. we
will make agreement with Pakistani cricket team management to sponsors the
matches. we realize that fact that cricket is a very strong element by which we
can reach our consumers & masses invested in the opportunity and launched a
massive campaign on mass media showing all these cricket stars support &
flatter our product. We will introduce adds of our product in which some cricket
stars will promote our product.

Sponsoring Concerts:

We will arrange concerts for the enjoyment of people and also aware them about
our product. We will bring the stars of people close to them. Again the purpose is
same, to create awareness about our product.
 28

5. public relation activities:

Public relation is our most important objective because it is the key think to
enter and remain in the market. We will do lot of exercise to built public
relation. Like our sale person will stand on the retailing shop to tell the
customer about our product. We already have planned to arrange different
events. The purpose of those events is to create public relations.

6. publicity:

Publicity is the important factor to create awareness about any product. We

will also do publicity of our product. We will use newspaper, T.V channels, and
also direct selling. We will also use radio for publicity. This steps will helps us
to improve our sales. On T.V channels we will choose that channels which are
famous in ladies like, GEO TV etc. and in newspaper we will choose ladies
magazine for publicity.

Quantitative SWOT matrix analysis:

External threats:
1. There are Large companies who have brand loyal customers providing the
market with not exactly similar but milky and other breads.
2. Switching brand loyal consumers to a smaller and newer company
3. Rising material, production, and shipping costs for a new, up till now
branch out company.
4. there is open market everywhere means any new company or existing
ones can start the same production who may have more experience or
more qualified staff.

External opportunities:
1. Creating a healthy product that provides options in flavors and relating to
diet value will plot new regulars
 29

2. Healthy component will allow us to break into the diet consumer

3. Being a new company will provide us the chance to set up thrill

Internal strengths:
1. Our ability to produce options keeps more consumer interest and needs
met.
2. Our new production technology will enable us to mass produce products
more efficiently and quickly than other old companies.
3. Our new taste will attract many such type of consumers who are taste
changer.

Internal weakness:
1. The more flavors we create, the more production costs will increase.
2. New technology and production methods will require greater preparation
and back-up wants.
3. At starting we will not have as such trained staff that has such a market
experience.

Matching the SWOT matrix:

strengths
1. Our ability to produce options keeps
more consumer interest and needs
met
2. Our new taste will attract many such
type of consumers who are taste
changer
Opportunities
1. Creating a healthy product that
provides options in flavors and relating
to diet value will plot new regulars
2. Our new taste will attract many such
type of consumers who are taste
changer

strengths
1. Our ability to produce options keeps
more consumer interest and needs
met
2. Our new production technology will
enable us to mass produce products
more efficiently and quickly than
other old companies.
opportunities
1. Creating a healthy product that
provides options in flavors and
relating to diet value will plot new
regulars
2. Our new taste will attract many
such type of consumers who are
taste changer
weakness
1. The more flavors we create, the
more production costs will increase.
2. At starting we will not have as such
trained staff that has such a market
experience
30
Weakness
1. The more flavors we create, the more
production costs will increase.
2. New technology and production
methods will require greater
preparation and back-up wants
Weakness
1. The more flavors we create, the more
production costs will increase
2. The more flavors we create, the more
production costs will increase
3.
Threats
1. There are Large companies who
have brand loyal customers
providing the market with not exactly
similar but milky and other breads.
2. there is open market everywhere
means any new company or existing
ones can start the same production
who may have more experience or
 31

more qualified staff.

Financial analysis
Projected startup cost-onetime expense
Asset Price Detail

land 20,000,000 Land located near Mureedkay, total area 6 acres. at front
there is G.T road. At right and left side there is garments and
other factories.
building 125,000,00 We will construct a building which contains 4 storeroom . and
2 big storeroom for plant and machinery.
Plant & 75,00,000 Plan and machinery for production of bread and packing and
Ingredients Quantity(kg) Price (Rs)
machinery printing.
flour .50 14
furniture 10,000 Furniture require for office.
sugar .10 2.5

Eggs(piece) 4 16
salt .10 1

Flavor(chocolate) 3

packing 1.75

Total 38.25

Profit margin 19.375

(50%)
Total price/ pack 58
 32

Revenue & cash flow projected with estimated sales forecasted.

Price/packet of bread

Expected sales in 1st quarter (approx).

Months Total units Price/unit total

sales
January 25863 58 15,00,000
February 29310 58 17,00,000

March 31034 58 18,00,000

 33

INCOME STATEMENT June July August

Sales Revenue(lacks) PKR 20.00 PKR 22.50 PKR 30.00

Less: Cost of Goods Sold PKR 15.60 PKR 17.55 PKR 2.34

Gross Profits PKR 4.40 PKR 4.95 PKR 27.66

Less: Operating Expenses:

Marketing Expense PKR 11.76 PKR 11.76 PKR 11.76

General / Admin. Exp. PKR 0.15 PKR 0.17 PKR 0.22

Depreciation Expense PKR 0.25 PKR 0.25 PKR 0.26

Total Operating Expenses PKR 12.16 PKR 12.18 PKR 12.24

net profit before taxes -PKR 7.76 -PKR 7.23 PKR 15.42

less tax PKR 0.09 PKR 0.07 PKR 0.15

Net loss/profit After Taxes -PKR 7.85 -PKR 7.30 PKR 15.27
 34

BALANCE SHEET

Current Assets: June July August

Cash PKR 300,000.00 PKR 320,000.00 PKR 330,000.00

Total Current Assets PKR 300,000.00 PKR 320,000.00 PKR 330,000.00

PKR PKR PKR
Land & Buildings 32,500,000.00 32,500,000.00 32,500,000.00

Machinery and Equipment PKR 7,500,000.00 PKR 7,496,000.00 PKR 7,492,000.00

Furniture & Fixtures PKR 10,000.00 PKR 9,700.00 PKR 9,400.00

inventory
PKR PKR PKR
Total Gross Fixed Assets 40,010,000.00 40,005,700.00 40,001,400.00
Less: Accumulated
Depreciation PKR 25,000.00 PKR 25,000.00 PKR 26,000.00
PKR PKR PKR
Total Assets 40,285,000.00 40,300,700.00 40,305,400.00

Current Liabilities: June July August

Taxes Payable PKR 8,500.00 PKR 7,300.00 PKR 14,200.00

Other Current Liabilities PKR 0.00 PKR 0.00 PKR 0.00

Total Current Liabilities PKR 8,500.00 PKR 7,300.00 PKR 14,200.00

Total Liabilities PKR 8,500.00 PKR 7,300.00 PKR 14,200.00

PKR PKR PKR
capital 41,061,500.00 41,023,400.00 38,764,200.00

net loss/profit -PKR 785,000.00 -PKR 730,000.00 PKR 1,527,000.00

Total Liabs. & Stockhldrs' PKR PKR
Equity 40,285,000.00 PKR 4,030,700.00 40,305,400.00

Ratios for march :

 35

Current ratio:

Total Current Assets

Current Ratio = ____________________
Total Current Liabilities

Current ratio= 330000/14200 = 23.23944

Gross margin ratio:

Gross Margin Ratio = gross profit/net sales

Gross margin ratio= 2766000/3000000 =0 .922

Net Profit Margin Ratio:

Net Profit Before Tax

Net Profit Margin Ratio = _____________________
Net Sales

Net profit margin ratio = 1542000/3000000 = 0.514

Conclusion
“We are quiet confident to have a successful launching of the
bread in the market.”