AdMark Business Plan

8/8/2019 AdMark Business Plan

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TABLE OF CONTENTS

Executive Summary...Pg 3

The Marketing Plan

1. Situation Analysis...Pg 4

y Market description...Pg 4

y Market Need..Pg 4

y Competitors AnalysisPg 4

y Market TrendsPg 5

y Market Growth...Pg 5

y SWOT Analysis.Pg 5

2. Objectives & GoalsPg 6

3. Marketing Strategy.. Pg 6

y Value PrepositionPg 6

y Critical Issues...Pg 7

y Target Market..Pg 7

y PositioningPg 7

4. Marketing MixPg 8

y Product Marketing..Pg 8

y Pricing StrategyPg 8

y Promotion.Pg 8

y AdvertisingPg 8

y Public RelationsPg 9

y Seminars & EventsPg 9

5. Sales PlanPg 9

y Sales ProcessPg 9

6. Action Plan.Pg 10



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The HR Plan

1. Introduction.....................................................................................................Pg 11

2. Employee Plan..................................................................................................Pg 11

3.

Organization Chart..........................................................................................Pg 124. Compensation & Benefits...............................................................................Pg 13

5. Tools & Training Goals................................ ............ ........................ ................Pg 13

The Financial Plan

1. Introduction.....................................................................................................Pg 14

2. Start-up / Initial Costs.............. ........................... ....... .......................... ............Pg 14

a. Business Registration Fees.................................................................Pg 14

b. Starting Inventories.............................................................................Pg 14

c. Rental Deposits.....................................................................................Pg 15

d. Utility Setup Fees..................................................................................Pg 15

3. Operating Expenses............................... ....... .......................... ..........................Pg 15

a. Salaries...................................................................................................Pg 15

b. Rent / Mortgages......................... .................. ........................ ....... ........Pg 16

4. Total Costs & Their Funding........................... ............. ........................ ....... ......Pg 16

5. The Financial Statements..Pg 17

a. Income Statement..Pg 17

b. Cash Flow Projection.Pg 18

c. Balance Sheet.Pg 19



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EXECUTIVE SUMMARY

AdMark is a marketing firm offering traditional and non -traditional services in marketing

and marketing consultancy to the local industry and entrepreneurs. AdMark will servethe marketing needs of businesses and individuals to enable them to realize their

marketing goals and the road map to achieve them keeping in view the local marketstrends and traditions.

The primary marketing objectives o f this marketing plan are to achieve the maximummarket share with minimum resources and marketing efforts.

The another key objective of this plan is to provide guideline and pattern for achievingour corporate goals and objectives and the financial resou rces required for carrying out

these activities.

Using the marketing mix and conducting seminars and different events will be our key

marketing strategy and its success will be determined by the clients we attract in the firstthree months of our business.



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T HE M A RK E T I N G PL A N

SITUATION ANALYSIS

The business we are entering into is of marketing firm and consultants called AdMarkmarketing firm. We are starting our business in the beautiful town of Abbottabad the

capital of Hazara division. The business is all about providing marketing solutions and

making them profitable by using our skills and knowledge of marketing techniques.

MARKET DESCRIPTION

Our market consists of local businessmen and entrepreneurs running businesses in

district Abbottabad. We will address their needs of marketing their products and

services. Currently there is a competition in all businesses and everyone is trying toattract more customers and profit then the competitors. We will provide them with the

new and attractive ideas of getting profit through marketing.

There is no other marketing consultancy in this region so it makes a great opportunity for

us to get into the market in the current situation.

MARKET NEED

The market of Abbottabad has increased with a very rapid speed, changing the businessnature and consumers buying patterns. These new businesses in almost all sectors have

stimulated competition among the businesses and confusion among the customers.

Competition and confusion raised the need of AdMark marketing firm.

COMPETITORS ANALYSIS

Currently we are the only firm entering into the market. Although there are some other

firms providing their services in the field of advertising but they are not focusing on all

the aspects of marketing. These advertising agencies can be our potential competitors innear future. So key potential competitors include:

y Mughals Advertising firm

y Jaidis

y Axiom Advertisements



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They all are focusing only on media advertisement through local cable network. Axiom

has also tried to provide other services related to marketing but due to lack of experts

they were unable to perform better so they quit the business.

MARKET TRENDS

Abbottabad is an educational city and a tourist point. Many people around the country

are migrating to this city. With more people from different cultures and areas residing in

this city has changed the market trends. Technology and globalization has its own impact

on this town. The changing market trends from traditional to new ideas, changing life

styles and needs and wants of people, influence of media on the local people has set new

parameters and trends in local businesses.

MARKET GROWTH

Currently the market is growing with the rapid speed. The growth in all the sectors from

service sector to industrial sector (small) and from small to medium and large businesses

can well be seen. Many new investors are coming to explore the market in recent years.

Schools and colleges, CNG stations, franchises of fast food and MNCs, banks and poultry

business are growing in recent t he years and in the future many more new businesses are

expected to come in to market.

SWOT ANALYSIS

Strengths Weaknesses

y First Mover Advantage y Market consists of SMEs

y Knowledge of Field/Business y Stable but slow Growth Rate of

Business

y Market Expansion/New Business y Lack of Fixed Profits

y Low Initial Cost y Lack of Compatible Technology inPakistan

y Involves Local business graduates

who are familiar with the market

y Limited Recourses for Technical

Marketing Ideas in the Country

Opportunities Threats

y Online Services y Competition in Future

y Starting New Trends in Local Market y Financial Crises in Country

y Getting Huge Market Share before

Competition Arises

y Economic Threats

y Hiring Local Business Graduates as

Interns

y Cultural & Local Restrictions

y Expanding the Business to other Districts of Hazara

y Limited Trend of Marketing amongLocal Businesses



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OBJECTIVES & GOALS

The objectives of AdMark are:

y Changing nature of businesses in local market

y Profitable and long lasting business relations with our c lients

y Satisfying the marketing needs of businesses.

y Getting maximum cliental before competition.

y Spreading the importance and needs of marketing in local business

y Providing profitable and socially acceptable marketing solutions

LONG TERM GOALS

Our long term goals are:

y To be market leaders and trend setters in consultancy

y To enlarge our business by providing consultancy in other districts of Hazaradivision

y To provide online services to the global businesses.

y To provide jobs to the local, fresh business graduates.

MARKETING STRATEGY

Our marketing strategies are based on meeting the needs and requirements of our clients. We will do this through leveraging internal and external business strengths andunderstanding the competitive environment. All marketin g strategies work towardsupporting our mission statement and realizing our stated goals.

VALUE PREPOSITION

Providing quality service is critical. Our business and individual clients judge our

competence based on how we treat them. This is their primary - and in many cases their only - measurement of our capabilities. Our Value Proposition to the client is that we will

do their marketing, provide marketing solutions, promotions, etc, better than they do it.We will work closely with our clients to make sure we know what their goals are, wherethey are financially and where they want to be in the future so that every service weprovide is personal and custom-tailored for our clients.



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CRITICAL ISSUES

Critical issues for AdMark include:

y Retaining clients is essential and will be determined by maintaining our reputation

built upon professionalism, trust, accuracy, and timeliness.

y Tracking results to better understand which marketing activities offer the bestreturn.

y Focusing on key market segments that will produce the greatest return.

TARGET MARKET

Our target market includes:

y Gas Stations

y Bakeriesy Cellular companies franchises

y Hotels and Restaurants

y Guest Houses

y Private Schools & Colleges

y Medical Colleges

y Fast food Industry

y Small Industries(beverages, marble, glass, food, packaging etc)

y Arts & Handicraft

y General Stores

y Transport

y Banks

The above are our target market but again there are some financial barriers and

limitations so the businesses with minimum profit of Rs 35000 will be our ultimate target

market among the above mentioned.

POSITIONING

We want our clients to view us as the most comprehensive, trustworthy, capable andcompetent firm in the business. We also want them to see us as the most cost effective

and convenient specialists.



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MARKETING MIX

The firm like us depends mainly on the clients' response and the referrals they made. For

a new firm it's not an easy task to make a place in the minds of clients. An overview of

our marketing mix strategy is below:

PRODUCT MARKETING We need to fulfill the promise we make to each client - to provide them with the

resources they need to reach their business and personal financial goals, withunwavering confidence in our firm throughout that process and, ultimately, throughouttheir lives. Our main focus will be on retaining our clients through the quality of services

we provide them.

PRICING STRATEGY

The nature of the business makes it difficult for setting fixed prices on our services. The

pricing strategy will depend on business to business and according to the needs andrequirements of our clients.

PROMOTION We will promote the firm through these critical marketing components:

y Enhance our profile within our targeted industries and areas of specialization

by increasing our reputation for possessing unique expertise in these areas.

y Have the expectation that all employees will take on the task of marketing the

firm as they approach their other areas of responsibility. We will track, give

feedback, and acknowledge efforts, accomplishments, and results from theseactions.

y Continue to use the technology we have, including our in -house computer

capabilities and our website. Both possess incredible potential for futuredifferentiation in an increasingly competitive market.

ADVERTISING We will advertise only in local newspapers as we want to attract local clients. We are not

big enough to spend money on national advertising in national magazines.



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PUBLIC RELATIONS

It will be important for us to use PR to maintain our image in the community, and to

remain known as THE experts in our industry. We will issue Press Releases when we get

big clients on board, assuming we have the client's permission.

SEMINARS & EVENTS

We will also conduct seminars and other events to facilitate our clients by providing them

specialists and expertise's opinions and suggestions. The business tycoons andmarketing experts in the country will be the source of attraction.

SALES PLAN Our sales plan hinges on making a good impression from the moment clients or potentialclients walk in the door or call. It costs much more to gain a new client than to retain an

existing one, so our main sales goal is to retain our clients for longer period of timeand increase our sales through them

SALES PROCESS Once we get a new client referral we will make sure we set up a welcome meeting for

them at no charge. This way the new client will have an opportunity to spend at least onehour with the relevant professional asking questions and understanding the services thatwe offer.

All prospective clients will also receive a packet with relevant information:

y How much we charge

y What services we offer

y How we implement those services

y Which manager will see them through all services and will be their "go to" person

y Happy client testimonials.



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ACTION PLAN

After entering into business following action plan will be carried out for promotional

activities of the firm.( 6 months)

First Month: Awareness programs and orientation by conducting an introductory sessionfor all the key entrepreneurs and officials from various key organizations.

Second Month: Advertising in local newspapers, cable network and also broachers willbe used as the promotional tools.

Third Month: Now in the third month of the business we will work on specified clients

from first two months and we will hope for having referrals from our existing clients.

Fourth Month: We will hold on with the existing clients and will start our advertisingcampaign again on cable, showing the satisfied clients reaction. This will surely increaseour client base.

Fifth Month: Now we will launch the new campaign on radio (local Fm 104) and will alsouse our PR to communicate our successful entrance into the market.

Sixth Month: The advertising campaign from here onwards will be determined by the

clients we have and the target we set to achieve in future.

FINANCES

The details of the finances for carrying out marketing are given in our financial plan.



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T H E H U M A N R E S O U R C E P L A N OF

A D M A RK

INTRODUCTION

The human resource plan describes your expected staff required in your business. The

areas of responsibilities, training and experience requirement for each

y Staff position,

y Organizational chart

y As well as compensation and benefits should be summarized.

This will also show the staff management programs that will plan to initiate and the goals

you wish to achieve. The human resource plan is often includes as a subsection in thepromotion of the bu siness plan. It will also tell you how you can recruit, screen, motivate,

train and discipline the staff we work with. So these kinds of things we will also observe

in our HR planning.

EMPLOYEE PLAN

Marketing consultancy firm AD-MARK

Job Title FunctionsCEO The function of CEO will be to see the overall working and

performance of the organization and also to do the strategicdecisions and policy implementations.

Office Manager His function will be to entertain the clients and make the file of theclient and there problems.

DatabaseManager

His function will be to create and maintain a complete database ofdifferent transactions, dealings and clients.

Consultant 1 His function will be to address the client and solve their problems by

providing his consultancy and expertise and come up with effectivemarketing strategies for their businesses.

Consultant 2 His function will be to address the clients and solve their problemsby providing his consultancy and expertise and come up with

effective marketing strategies for their business.

Guard Security guard will also be hired for the general security of the officearea.

2 Workers These two workers are the cleaner and the peon.

Accountant Accountant is the person who will be looking over all the accountsof our consultancy Firm.



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ORGANIZATION CHART

Organization chart is made because it will help us to demonstrate how our staff

members are structured and to whom they will be reporting. This will help us in two

reasons:

y First, readers from outside the organization will understand the hierarchy of our

firm.

y Secondly our own employee will know that who will have to report whom.

After this what major changes will be done in our organization should be noted and with

the passage of time these changes will also be mentioned so that consultancy firm

should accept the changes as the environment is changing.

CEO

Consultant 2Consultant 1Office Manager

Database

manager

Accountant

PeonCleanerGuard



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COMPENSATION AND BENEFITS

This will be shown by the chart which shows different benefits that we will be giving to

our staff. It will show the salary and wages we will be giving to the employees. It will help

us to estimate the compensation level for whi ch we will need to plan. The anticipated

changes in wages and compensations during the period can be changed also.

Position Salaries

CEO Rs. 30,000

Office Manager Rs. 20,000

Consultants Rs. 1000/hr (per person)

Cleaner & Peon Rs. 4000 (for each)

Accountant Rs. 10,000

Database Manager Rs. 10,000

Security Personnel (1) Rs. 5000

This is the kind of the salary that we plan to be given to the staff of our organization.

TOOLS AND TRAINING GOALS

The CEO of the firm will be hired with an experience of 10 years in the field of marketing

who has the ability to take this firm into the leading firms of Pakistan. The consultants

will be the specialized personals in the field of marketing who can bring effective and

SMART marketing solutions for the clients. Office manager will be a person with a 5 years

experience of running the office operations efficiently and effectively. We will be hiring acomputer specialist for the job of database manager who will be maintaining the

database of the firm. An accountant will also be hired who will look after and maintain

the financial issues and transactions of the firm.

Target Barrier Planned

Employee Safety, An

Accident-free Workplace

Knowledge of working

conditions

Training, employee manuals,awareness and supervision

High productivity Work habits. Knowledge,

attitude, experience etc

Attention to employee concerns,regular performance reviews,

training opportunities, job design,staff hiring, management style

Low staff turnover ratio Demand for skilled

workers in other firms

Attention to employee concerns,regular performance reviews, staffhiring and training opportunities.



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F I N A N C I A L PL A N FO R A D M A R K

INTRODUCTION

Since we are a Marketing firm and for that matter we would be giving a mix of bothproduct and services, it is therefore much more difficult to forecast the sales and

different financial statements for this project. However, this topic will try to focus on the

relative expenses and costs associated with the business undertaking. To start with, we

will categorize our expenses between the start -up costs and the operating expenses. Our

operating expenses represent our variable costs related to the business. For the

intention of elaboration, these expenses represent a single month.

START-UP / INITIAL COSTS

BUSINESS REGISTRATION FEES

Since we plan to initiate this commerce on a proficient level , registration with the

concerning authorities is only a matter of time and it is considered a crucial part of our

goals. This registration would also include acquisition of license and permit to operate in

the designated areas. The registration fees incurred initially would depend on the area of

operation and the resulting profits generated by the company as wel l as the taxation

policies laid down by the CLA, but we estimate the initial charges as ranging from Rs.

25,000-30,000.

STARTING INVENTORY

Following is a list of inventory needed within the apartment building to assist in starting

the business:

Item Amount Price/Item (in Rs)

P4 Desktop PCs (custom) 3 16,500 (x3)

HP 5610 Inkjet Printer 1 15,000 (x1)

Dual Core Laptops (Acer) 2 25,000 (x2)

Furniture --- ---

PC Tables (with chairs) 3 1500 (x3)

Office Tables 2 850 (x2)

Office Chairs 6 500 (x6)

Single Sofa Set (for lounge) 1 (complete set) 8500 (x1)

Miscellaneous (stationaryetc)

--- 500

Total --- Rs. 117700/-



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RENT DEPOSITS

Since we have rented our apartment, we will include its monthly charges with the

operational costs but a down payment of Rs. 4000 is made against a monthly payment of

Rs. 3500/room (two rooms in total).

UTILITY SETUP FEES

Given that our apartment is already a rental deal , we can forgo most of the utility setups

as they are already provided. However we do plan to acquire some additional utilities

such as a DSL network service from Wateen Telecom. We are deciding on buying a 1Mb

internet speed while paying monthly. The registration charges incurred here are Rs.

8000, including the fee for the next two months.

PROMOTIONAL COSTS

Although the detail of each promotional activity is outlined in our marketing strategy,here is a list of funds that we plan to use up for each activity (locally):

Activity Maximum (Allowed) Cost

Seminars & Events Rs. 25,000

Print Media (Newspaper only) Rs. 20,000

Cable Network Ads Rs. 20,000

Brochures Rs. 5000

Total Rs. 70,000/-

OPERATING EXPENSES (FOR THE F IRST MONTH)

SALARIES

Following is the list of salaries based on the mode of initial operations and hierarchy of

the business organization:

Position Salaries

CEO Rs. 30,000

Office Manager Rs. 20,000

Consultants (2) Rs. 1000/hr (x2)

Cleaner & Peon (2) Rs. 4000 (x2)

Accountant Rs. 10,000

Database Manager Rs. 10,000

Security Personnel (1) Rs. 5000

Total Rs. 85,000/-



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RENT / MORTGAGES

As discussed earlier, we have rented two rooms with a monthly rent of Rs. 3500/month,

which is

Rs. 7000 in total.

TELECOMMUNICATIONS / UTILITY

This is a variable cost that changes based on the amount of use but still there are some

minimum fixed costs related to them, which are:

Utility Minimum Charges

Telephone Bill Rs. 3000/month

Electricity Bills 12,000/month

Wateen Telecom Rs. 1700/month

Total Rs. 16700/month

TOTAL COSTS & THEIR FU ND ING

In this section we shall discuss the total costs that we would initially incur along with the

total operating expenses. Under these two we will then decide on how much we plan to

borrow from the bank and what amount to invest by ourselves.

Costs Amount

Initial Costs Rs. 224,700/-

Operating Costs Rs. 98,700/-

Total Costs Rs. 330,000/-

Out of this amount of Rs. 330,000 we plan to borrow Rs. 250,000 from Bank Alfalah ATD,

and the remaining Rs. 80,000 we plan to generate from our E -Commerce website

relating to the business.



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PROJECTED FINANCIAL STATEMENTS

As we know that it is not possible to draw up financial statements when starting a new

business but for the purpose of this business plan we have visualized some figures that

we plan to achieve in the six months following the launch of the business. Note that

these are only projected figures anticipated only for the proposal to investors and actualfigures may vary.

THE INCOME STATEMENT

AdMark®

Income Statement

For the six months ended June 31, 2009

Revenues (Services)

Market Research Rs. 120,000

Media Ads Rs. 135,000

Business Plans Rs. 165,000

Promotional Strategies Rs. 45,000

Training Programs Rs. 220,000

Other Consultancies (misc) Rs. 65,000

Total Revenue Rs. 750,000

Expenses

Direct Costs

Materials Rs. 70,000

Salary (Owner) Rs. 60,000Wages Rs. 85,000

Total Direct Costs Rs. 215,000

General & Administration

Accounting & Legal Fees Rs. 12,000

Advertising & Promotion Rs. 70,000

Depreciation & Amortization Rs. 4000

Interest (on Rs. 250,000 loan) Rs. 75,000 (at 5%/month)

Office Rent Rs. 42,000 (at 7000/month)

Telephone Rs. 18,000

Utilities Rs. 22,200

Total General & Administration Rs. 243,200Total Expenses Rs. 458, 200

Net Income Before Income Taxes Rs. 291,800

Income Taxes Rs. 14590 (at 5%)

Net Income 277210



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THE CASH FLOW PROJECTION

AdMark®

Statement of Cash Flows

For the six months Ended July 31, 2009

Cash Revenues

Revenue from Product Sales Rs. 250,000

Revenue from Service Sales Rs. 500,000

Total Cash Revenues Rs. 750,000

Cash Disbursements

Management Draws Rs. 120,000

Salaries & Wages Rs. 85,000

Promotion Expense Paid Rs. 70,000

Professional Fees Paid Rs. 50,000

Rent/Mortgage Payments Rs. 42,000Telecommunications Payments Rs. 18,000

Utilities Payments Rs. 22,200

Total Cash Disbursements Rs. 470,200

Reconciliation of Cash Flow

Opening Cash Balance Rs. 80,000

ADD: Total Cash Revenues (750,000) Rs. 830,000

DEDUCT: Total Cash Disbursements Rs. 470,000

CLOSING: Cash Balance Rs. 359,800



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THE BALANCE SHEET

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Documents

AdMark Business Plan