Business Plan
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Table of Contents
1. Executive Summary
2. Business Description
3. Industry Analysis
4. Services Overview
5. Marketing Plan
6. Design and Development Plan
7. Operational Plan
8. Financial Plan
1. Executive Summary
We have initiated a new company with the name of LABELIZER which will bring a new and effective way of advertisement. We believe that we have got the most effective form of advertising available in the market today. Thats right, we advertise on polystyrene cups and we put your brand in their hands. This business is a partnership of four FAST-NU undergraduates of Computer Science department. We envision promoting brands by labelizing their names on the cups and our mission is to provide a new and state of the art advertisement strategy which is cost effective as well as quality is guaranteed. Our business is characterized with comparatively low competition since it is not common in Pakistan. Moreover, research shows that about 91 % population of Pakistan drink tea while 9% favor coffee so where ever tea, coffee or any other eatable is sold, there is a likely chance that polystyrene cups would be used. Initially, we will divide the target market in two segments which include brands that need to get themselves advertised and the other segment includes food stalls, coffee stalls etc where the polystyrene cups will be used.
We believe that this mode of advertisement is certainly needed since it will aid brands that are on the verge of downfall and it will benefit them in promoting them by captivating the minds of customers.
The development and design plan for Labelizer is characterized with an initial setup in G/9-3 sector Islamabad and the entire financial plan is also discussed. However, we will give the highlights of NPV, IRR and the initial investment includes a price of RS 162,000. The final IRR is almost 20% which shows that it will be an appropriate choice to go for this business and adopt it in the future since it will generate profits.
1.1 High Lights
1.1.1 Initial Investment 63,000 Setup cost 18,000 machinery/Equipment 64,000 Advance Rental 7,500 Working Capital 10,000 Pre-operating Expenses 162,500 Initial Investment
1.1.2 IRR
The IRR we found was 19.1% which is approximately 20%. This is a reasonable rate for a business.
2. Business Description
2.1 Company Overview
Labelizer is situated in G-9/3 sector Islamabad, Pakistan. It was initiated by four BS (Computer Science) under graduates of FAST-NU Islamabad campus, as a partnership, in Novemeber 2012. Labelizer switched and concentrated on labelizing items like polystyrene cups with the names of Brands for their advertisement. Thus, we Labelize the names of various brands on items to promote brands by placing the items in the related market.
2.2 Mission and Vision
Vision: To Promote Brands by Labelizing their names on different Item.
Mission: To provide a new and state of the art mode of advertisement.
2.3 Strengths and Core competencies
Low competition is faced in this business, as such advertising technique is not practiced or less practiced in Pakistan.
Low cost advertising is provided to its customers.
Polystyrene cutleries are easily available at low cost.
Skilled and dedicated group of computer professionals
2.4 Challenges
The initial challenges that Labelizer will face includes:
Creating its own brand image
Creating Awareness that this kind of business exists in the market
Attracting the customers towards its services
3. Industry Analysis
Advertisements have always played a major and vital role in captivating the minds and hearts of customers. Every brand needs a mode of advertisement to create awareness in the minds of customers. Some brands opt for costly mode of advertisements while other select cost effective with no compromise on the quality of advertisement. We at Labelizer ensure that our innovative form of advertisement is cost effective as well as of high quality. Labelizing brand names on polystyrene cups, is relatively new in Pakistan, however, it is being practiced in foreign countries.
According to a survey conducted in 2010, United States spent approximately $142.5 Billion on advertising while $ 467 Billion was spent on advertising World Wide. This certainly is a huge figure which reveals that the brands and companies are keen to invest in advertisement sector. Moreover, it depicts that advertising industry has a lot of scope since with every passing day, new brands and companies are emerging and they are investing in advertisements for their brand promotion.
Pakistan is a tea drinking country with a 91% majority in favor of tea. 8% population of Pakistan favors coffee. Mostly, people enjoy tea while shopping and roaming in markets and the cups used to drink tea are mostly paper cups or polystyrene cups. Thus with such a vast majority, this business can certainly be used to promote brands and certainly, it is one of the best way of advertising. Moreover, Researchers at Gallup Pakistan found that the average number of tea cups consumed by a person daily in October 2008 was about two and a half. This is just one scenario where polystyrene cups are being used. In general, we can find these cups at numerous places including Magic corns, coffee stalls, ice cream stalls and much more. Thus bringing this innovative mode of advertisement can certainly benefit the brands to capture the hearts of