COMSATS INSTITUTE OF INFORMATION TECHNOLOGY,

ISLAMABAD

AD MAG

Submitted to:
Sir Ayyaz Reshi

Submitted by:

M Tariq Saeed FA09-MBA-111

Sohail Shafiq FA09-MBA-109
Nouman Malik FA09-MBA-119
Taimoor AhmedFA09-MBA-169
Sadaf Jameel FA09-MBA-141
Qaisar Sajjad FA09-MBA-130
Sabahat Farooq FA09-MBA-140
Rafia Mansoor FA09-MBA-132
Waqar Ahmed FA09-MBA-186
Zara Sajjad FA09-MBA-196

 D edication

We dedicate our work to our honorable

Parents and respectable teachers, whose prayers
And magnificent devotion to our
Studies encourage us to achieve this
Landmark
 ACKNOWLEDGEMENT

Our foremost thanks are due to Almighty Allah for making us enable to
complete this project in the due course of time. Then we would like to pay
gratitude to our course facilitator Sir Ayyaz Reshi for solving our issues and
clarifying our concepts. He really has been of great assist. We owe a great
deal to our families and class fellows and specially Madam Sarwat for their
constant support and encouragement.
 E xecutive S ummary

Our project is about the development of new product. Our new

product is AD MAG Magazine which is price free for its ultimate consumers
or readers. For this purpose we took help from our teacher. First of all we
developed the idea and for the completion of that idea we allocated budget
for different activities which were performed in the development of AD
MAG.
We discussed strategies for our product advertisement and promotion.
We have selected the Niche marketing strategy, because we have to attract
the product and service providing companies already operational in
Rawalpindi and Islamabad.
Apart from that our product marketing strategy is,

 Advertising
 Sales Promotion
 Publicity & PR
 Sales Force
 Direct Marketing

The reason of our entrance in this field is the high profit margin and such an
attractive market. Our AD MAG Magazine has no competitors as such and
this was another good reason for entering the market. Some of the
advertizing magazines are already operational in this segment or market but
still we have a competitive advantage over them of price off magazine.

Total investment for this project is more than Rs 0.5 million. Nature of
business is partnership. Marketing Research System and Marketing
Information System are specially focused at competitive edge over expected
competitors at any level of our Magazine life cycle.
This is not a very heavy budget for us so we have decided to go for private
branding strategy.
Our price will be fair and we have price penetration strategy because we
want a high market share in the market before the entrance of any competitor
in the market.
We will distribute it at mass level in Rawalpindi and Islamabad,
Promotion can be carried out via Website and Personal Relationships as we
can’t afford heavy budget for Billboard, Hoardings and Television
Campaign.
 Introduction
We have recently incorporated a new company AD HOME Pvt (Ltd).
We are going to launch a new advertizing magazine AD MAG in our target
market to facilitate companies and businesses in advertizing.

Mission statement

 “Providing best quality services with suitable price”

 We are committed to customer satisfaction through offering high quality
experiences with exceptional service and good value.
 We take great pride in serving each other, our customers and our communities.
 We seek continuous improvement in all that we do.

Vision Statement
Making AD MAG every product requirement.

A summary of the Current Situation

There are lots of news papers and some of the magazine already providing
advertising services to the companies. But the problem is that to get
awareness of the market and products customers have to spend some money.
On the other hand companies have to pay a mega budget for making its
target customers free aware via Hoardings, Billboard, Websites, Radio,
Televisions and Costly Magazines.
So there is a need and opportunity for us to enter in the market in such a way
and with a new strategy that will support both the company and ultimate
consumer as well by charging fair price to companies and no price to
readers, exposures or company’s Potential customers and consumers.
SOWT ANALYSIS
Strengths:

 Low price charges to companies want their products and services

advertise.
 Mass distribution of Magazine
 Price off Magazine
 No competitors
 Competitive advantage of pioneer in the market
 Competitive advantage of already captured market share

Weakness:

 Low budget and low investment

 No company’s capital recourses
 Less coverage (only in Rawalpindi & Islamabad)
 New in the Market
 Low Public Relationship

Opportunities:

 Extension of Market Coverage

 Self Capital Resources

Threats:

 Expected Competitors
 Print Suppliers/Developers
 Law and Order
 Load shedding
 Economic Crises
 Bargaining power of Customers.
 Bargaining power of Suppliers.
 A Focus on Assessment of the Market Opportunity:
Target Market Segments:

Islam
abad Attock Lahore Punjab

These are our different segments and we have analyzed Rawalpindi and Islamabad as
our target market.
We have seen an opportunity in the market of Rawalpindi & Islamabad
that there is very huge advertising potential, consumer want advertisement
and companies want their products advertise through every channel. we
came with a new idea that will attracts companies that their products,
services and ideas become the part of the public life as they are not going
to pay a single penny out of their pockets and they will carry our AD MAG
Magazine with their home where every one in the home can read it out and
get information about the different products and services of multiple
companies.
Apart from that we have no competitors in our targeted market.
Some of the news paper can be our competitors in logical senses but their
life cycle is very short and plus they are charging money from their reader
and targeted customers.

Financial and Marketing Goals:

Financial Goals;

Financial Goals:

 We want to meet our breakeven point early in the initial stage.

 Fair Profit after meeting Break Even Point.
 We want per unit cost of Magazine would be low enough that we
will have maximum copies resulting in maximum numbers of
exposures. This will help us scoring good market positioning in
the mind of customer.
 Marketing Goals:

 Positioning.
 High Market Share.
 Capture high exposure.
 Available in all prominent stores and Home Delivery via different
means.

Marketing Strategy:
Our strategy is based on delivering a strong customer value proposition in
a niche market. Our marketing strategy will be very clear. We have to build
a very strong relationship with the concerns. We will have to visit directly
the different companies, stores, manufactures and distributors with the idea
that we will make your product and service every home and individual
decision choice.

 We are building our Public Relationship so that we can

eventually reach additional cities with the same offering.
 Our main focus is to meet our customer’s expectations

1). How the Product will be positioned

It can only be possible for a newly incorporated company with a very
new idea within the very selective market segment if it will prefer
building customer relationships by providing superior customers values,
that is, via assuring them as an active business partner and letting their
customer aware of products and services by a very fast and secure
medium of advertising. Our positioning criteria is indeed depends upon
the listed factors plus.

Low Charges comparatively

Fast Advertizing Medium
Secure Advertizing Medium
Direct Involvement and Interest
Greater Number of Exposures
Intensive Distribution within the selective Market
 2). How our Product Will be Distributed

 We are aiming to distribute and placed our end product via very
distinguished procedure, meeting the stated criteria and the
way we have selected different tools for placing.
 Placed on Mega stores and shopping malls
 Distributing to the drivers, individuals and families at traffic
signals
 Hire services of news paper delivery personnel to deliver the
Magazine with the news paper.
 Visiting once in a Magazine period into different graduate and
post graduate institutions.
 Hire a distribution team that will carry distribution operation
across the twin cities as required and instructed by the
company higher authority.

A Month to Month Marketing Budget:

As for our Magazine Marketing budget is concern we have
decided to go for only two channels because web marketing, Billboards,
Broadcast marketing can’t be the part of our strategic fit. We can’t meet our
cost while going for those very channels. Besides this direct approaching to
the companies or our customers is really very fruitful and result full.

Medium Expected Max Budget

Cost
Maintaining PR 20000 25000

News Papers 25000 30000

Total cost 45000

 Month to Month Finical Budget;

Serial Events Cost

1 Composing 6000

2 Plate Making 10000

3 Paper 30000

4 Printing 40000

5 Binding 10000

6 Packing 2000

7 Distribution 12000

Total Cost
110000
Total Pages 10 Total side 20

Description Price Division Total

Full Side 15000 4 60000

Half Side 8000 3 48000

Quarter Side 5000 5 100000

2x5 2000 4 64000

Front Page Side 30000 1 30000

Front Page Inside 20000 1 20000

Back Page Side 25000 1 25000

Back Page Inside 0 1 0

Total Revenue 105000 20 347000

Calculations Profit = TR-TC
TR = 347000
TC = 45000+110000
TC = 155000 347000 – 155000 = 192000
 Applying Marketing Mix

Product: (Customer Solution)

We have a new product that is service in its nature. We have launched a
Magazine in the target market that will serve different businesses in their
advertising problems.

 Our service is a better solution for the publicity.

 Our service is a very unique in its performance.
 Our product is well shaped and designed.
 Magazine features, it is a single platform for the multiple
different Organizations.
 Our product provides core benefits, actual benefits and
augmented benefits.
 Our product is durable (how long it can be used) as compared to
newspapers and its other logical competitors.
 Our product is reliable for its customers as we have a strategy of
direct meeting with them at different occasions.
 Our product (Magazine) style is very attractive and charming.
 Easy to order or purchase our services.
 Out product is totally customers consulting and involvement
based.

R
Price :( Customer Cost)
Penetration Strategy:
Although AD MAG is new in the market without any competitor and got the
distinctive features but it cant go for price skimming strategy as AD MAG is
not a technology based product.
So, for capturing a rapid market share our company “ADS HOME Pvt (Ltd”
CEO decided to go for price penetration strategy.
Our focus is on good-value pricing strategy where we can charge via
providing right blend of quality and differentiating service.

Penetration strategy will help in company’s long term performance, goals,

objective and building stronger customer relationships.
This is the only marketing tool that will increase our product life cycle and
the longer product life cycle depends upon the strong customer’s
relationship in services.
 Place: (Customer Convenience)
Distribution Strategy:
We have three types of distribution strategies.

AD
MAG AD AD
MAG MAG

D
I
R V
E V
I I
C
T A A

Sales Shop
News
Force ping
Paper
Mall
s

D
I V V
R I I
E A A
C
T

Expo Expo Expo

sure sure sure
  We will hire a sale force and they will directly deliver it to peoples in
different areas.
 We will hire the services of news papers distributors and they will
deliver AD MAG with news paper.
 We will place AD MAG to shopping malls, stores.
Promotion :( Customer Communication)
AD MAG has very limited resource so it can’t go for promoting itself by
every medium yet it will carry out its promotion campaign;

 Through Direct Customer meetings.

 Through Customer’s relationship management.

 Through News papers advertisements.

BCG Matrix:
AD MAG lies in Question Marks and it has the ability to become a Star very
early after its growth stage.

Strategies Required:
 Increase of Investment.
 Ad Campaigns.
 Stronger Customer Relationships.

Product Life Cycle:

AD MAG at the moment going through the development and introduction

stage in the product life cycle. AD MAG immediately cannot reach the stage
of maturity of growth. It will take some time. First it has to go through the
introduction stage and then forward systematically. According to our instinct
our product will reach the stage of growth by mid of 2010. And then it
would obtain the stage of maturity by 2012 in the product life cycle. When
our product will reach at maturity stage we will go for some new target
markets as it is stated above in the target market segments. But when our
product would be leading towards decline then we would introduce some
innovation.
Controlling Market Plan:
While developing market plan I may ignore some of the issues that are now
arising at product development and introductory stage.

 Customer demand is lower than we were expecting.

 Customer uses our product we have never intended.
 Invisible competitor comes in the market.
 Cost may increase at introductory.
How to cope up with these Issues:

As a Financial Controller I will see AD MAG’s return on investment.

And marketing controller will increase the efficiency of distribution
channels that will increase our reputation in the market segment resulting in
fair demand.
2nd we increase ad campaign and we will utilize the extra marketing budget
we have kept aside while making market budget resulting in good product
positioned in the mind of customers.

Conclusion:
Coming with new idea and then developing its market plan is really very
critical job for a Ceo of the company but at every stage of making a
marketing plan we have consider all the strategies and that’s why we remain
successive.