Marketing Plan: Lezat Cola

Contents
1 Business Plan.......................................................................................................................................5
1.1
Marketing Management
Company Summary......................................................................................................................5
1.2 Company Ownership...................................................................................................................5
1.3 Start-up Summary........................................................................................................................5
1.4 Our Mission.................................................................................................................................5
1.5 Our Vision....................................................................................................................................5
1.6 Goals and Objectives...................................................................................................................5
1.7 Business Philosophy.....................................................................................................................6
1.8 Industry Situation........................................................................................................................6
1.9 Company strengths......................................................................................................................6
2 Marketing Plan....................................................................................................................................7
2.1 Situational Analysis......................................................................................................................7
2.2 Company Analysis........................................................................................................................7
2.3 Marketing Research and customer analysis.................................................................................7
Questionnaire......................................................................................................................................8
2.4 Market Demographics..............................................................................................................18
2.5 Target customer Description.....................................................................................................18
2.6 SWOT analysis............................................................................................................................18
2.6.1 STRENGTHS:.......................................................................................................................18
2.6.2 WEAKNESSES:....................................................................................................................19
2.6.3 OPPORTUNITIES:................................................................................................................19
3 Target market and Segmentation......................................................................................................19
3.1 Segmentation strategy of Lezat Cola.........................................................................................20
3.1.1 Demographic Segmentation..............................................................................................20
3.1.2
Authors
Psychographic Segmentation.............................................................................................21
Ahmad Sajjad Shabbir
4 Marketing Mix of our product...........................................................................................................21
MS (Banking & Finance)
4.1 Product......................................................................................................................................21
4.2 Price...........................................................................................................................................22
4.3 Promotion..................................................................................................................................22

2
 4.4 Place..........................................................................................................................................22
5 Pricing Strategies and Programs........................................................................................................23
5.1 Which factors we used to switch the customers?.....................................................................23
5.2 How we develop pricing strategy?.............................................................................................23
5.3 How we set the price?...............................................................................................................23
5.4 How we analyze competitors Cost, price, and offers?...............................................................23
6 Creating Brand Equity........................................................................................................................24
6.1 Why launch new brand in market?............................................................................................24
6.2 How we create brand equity in market?...................................................................................24
6.3 Leveraging Secondary Association.............................................................................................24
6.4 How we decided for brand extension?......................................................................................25
7 Advertisement decisions of Lezat Cola..............................................................................................25
7.1 ADVERTISEMENT OBJECTIVE.....................................................................................................25
7.2 Setting of Advertising Budget....................................................................................................25
7.3 Advertisement Media................................................................................................................25
8 Financials...........................................................................................................................................26
8.1 Advertisement Budget...............................................................................................................26
8.2 ROI on Advertizing Budget.........................................................................................................27
8.3 Monthly Sale forecast for TWO years........................................................................................28
8.4 Pro Forma Income Statement....................................................................................................29
9 Bibliography.......................................................................................................................................30

3
Table of Figures
Figure 1: Porter 5 Forces.............................................................................................................................8
Figure 2: Customer- Base Brand equity.....................................................................................................26
Figure 3: Advertisement Budget................................................................................................................28
Figure 4: 24 Months sale forcast...............................................................................................................30

4
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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Executive Summary
Lezat cola (PVT) limited will sell soft drinks (Lezat cola, Lezat Lemon, Lezat Orange and Lezat
Diet) as its primary products in addition to Juices for 10 different flavors.

Lezat (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
Lezat Cola (PVT) Limited

Because Lezat (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 Lezat cola will get a good market share and develop taste in his
customers very quickly.
1 Business Plan
1.1 Company Summary
Lezat cola will be known for selling Soft drinks with 4 different flavored syrups to children and
other all age people in Pakistan

1.2 Company Ownership

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

1.3 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

1.4 Our Mission

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

1.5 Our Vision

“Dedication to quality is a way of life at our company, so much so that it goes far beyond
rhetorical slogans. We want to be known as a leader of quality soft drinks in the region”.

1.6 Goals and Objectives

Lezat 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 total quality management
standards are adopted on all levels of manufacturing and production, for guaranteed 100%
customer protection when using the product. Moreover, the company is committed to
maintaining positive 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 Lezat cola product is to gain at least 10% market
share over the first 5 years

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1.7 Business Philosophy
Price sensitivity is the main concern for all people 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. In other words we want to be a low cost leader in
the carbonated drinks industry.

1.8 Industry Situation

Through our R & D we found out that global changing weather and culture is creating potential
for soft drinks industry.

In Pakistan there are currently six players in the soft drinks industry including Coke and Pepsi as
market leaders. Since the population of Pakistan is growing at the rate of 1.70 % annually it is
giving us opportunities to capture market share for our drink based on day to day increase in
population and demand as well as. Moreover, based on porter five forces there is intense
competition in the soft drinks industry, bargaining power of supplier is low, bargaining power of
customer is high, threat of new entrant is high, and also bargaining power of substitutes is high
as well as.
Figure 1: Porter 5 Forces

1.9 Company strengths

Our major strength comprises of R & D, loyal employees, unique organization culture, quality
product, efficient distribution network and high level of customer service. All these things create
a unique value proposition that delights our customers.

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2 Marketing Plan
2.1 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 with our unique products with high quality,
healthy ingredients, competitive price and ease of availability

2.2 Company Analysis

Our COMPANY Lezat Cola (PVT) Limited is located 10 Km from Multan road Lahore;

We are going to promote our existing and experienced manager to top level position based on
succession planning that increases employee loyalty and decrease turn over rate. We want to
assure employees that are the valuable assets and owners of this company through empowerment
and unique organizational culture that will create competitive advantage for our company in the
long run.

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

2.3 Marketing Research and customer analysis

Before launching our product we collect a survey report from a research company who checked
through a questionnaire the market potential and analyze customer & consumer demand.

In today’s society, people are looking to lead better, healthier lives, Lezat 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 Lezat cola, or Diet Lezat Lemon .

8
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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2.4 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)

2.5 Target customer Description

 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

2.6 SWOT analysis

It is a very useful tool used by any organization to compete with dynamic environment and make
strategies accordingly; otherwise a company can have a failure. Simply SWOT analysis has two
parts internal and external. Internal evaluation includes strength and weakness while external
analysis included threat and opportunity.

2.6.1 STRENGTHS:
Our major strength consists of the followings.

 R&D
 Unique organizational culture
 Loyal and committed employees
 Cross functional teams
 Healthy ingredients of our drink
 Higher level of customer service
 Efficient distribution network
 Affordable price for customers

2.6.2 WEAKNESSES:
Our major weaknesses are given as below.

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  Weak financial position
 New to market
 Deficiency in public relations
 Lack of experience in soft drink industry
 Low awareness of our brand in market
2.6.3 OPPORTUNITIES:
Our major opportunities are as given below.

 Population is growing at the rate of 1.70 % annually.

 Literacy rate is increasing that makes people more health conscious.
 Social and demographic changes in Pakistan create more potential fore our product.

2.6.3.1 2.6.4 THREATS:

Followings are the major threats as concerned with our soft drink.

 Political instability in Pakistan.

 Increased domestic violence and terrorism.
 Global economic recession.
 Energy crisis such as electricity and natural gas shortage.

3 Target market and Segmentation

Target market and segmentation is very important and crucial for a success of a new product or
company if the target market or segmentation is wrong the company can be bankrupt, and if it
makes a good segmentation and target market it can be a market leader.
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)

3.1 Segmentation strategy of Lezat Cola

Lezat Cola will follow mass marketing technique, which obviously falls in undifferentiated
marketing, and undifferentiated marketing means no segmentation, but there are minor factors on

20
which we can say that the Lezat cola will segments its products and then targets the customers
somehow. These factors are as follows.

Lezat 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. Lezat 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.

3.1.1 Demographic Segmentation

AGE

Due to globalization, latest technology, and changes in both social and demographics people life
style and behavior has totally changed we are considering all these changes to capture this
potential.
Pakistan is considered to have a more young population i.e. average age of Pakistani population
is less than 50 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. Our strategy would be to target both
young and older customer as well as to capture good market share in start and in the longrun.
GENDER
Lezat 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 line and brand extension.
FAMILY TYPE
Pakistan is a country where majority of the people are living as a joint family. Lezat cola will
introduce its economy pack, and that’s how they focus family and groups.
INCOME
Price of our drink is very competitive and affordable by any customer regardless upper middle
class, middle class and lower middle class. We use economics of scale in our packing and
bottling to serve different segments needs and wants.
Lezat 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.

3.1.2 Psychographic Segmentation

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

LEVEL OF EDUCATION

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Every company has to make promotional strategies keeping in view the customer level and also
responding to competitors promotional strategies to survive and stay in the business. 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.

4 Marketing Mix of our product

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

 Product
 Price
 Promotion
 Place

4.1 Product
The brand name of our product is Lezat Cola which is an Indonesian word meaning pleasant taste. Surely
that will create good perception in the mind of the customer and emotional appeal for our drink.

 Product Variety: We provide it in

 Lezat cola,
 Lezat lemon,
 Lezat Orange
 Lezat Diet

 Quality: We will adopt total quality management technique.

 Design : The design of bottle is in RGB (REGULAR GLASS BOTTLE).
 Brand name: Our brand name is “Lezat Cola”
 Packaging: It will provide in the pack of 24 bottles.
 Size: It will provide in 250 ml RGB (REGULAR GLASS BOTTLE) pack.

4.2 Price
 Competitive Price:
We will charge competitive price for our product.

 List price:
Price of our product is Rs.11.99/- per bottle.

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  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

4.3 Promotion
 GETTING SHELVES
We will pay shelve placement fees to 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 Lezat Cola positions their freezers and their products in
eye-catching positions.
 SALE PROMOTION
Company will also do event sponsorships with different college and school’s cafes and
sponsors their sports events and other extra curriculum activities for getting market share.

4.4 Place
Our main office will be located in Lahore from where we will 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 Pricing Strategies and Programs

5.1 Which factors we used to switch the customers?
Customers switching is a big problem and now a day’s brand loyalty is decreasing due to
availability of new brands. We will use these factors which help us to retrieve our customers.
 Pricing
 Inconvenience
 Core service
 Matching Competition activities

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5.2 How we develop pricing strategy?
Since we are charging competitive price 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.

5.3 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

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

For analyzing the competitor price we should consider the nearest competitor price

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

Unit Cost = Rs 8 per unit

Per Unit Price =Rs 11.99

6 Creating Brand Equity

6.1 Why launch new brand in market?
We are launching a new brand in market because we will generate the taste for consumers
according their needs. Now in 21st century new generation wants something new. So as per the
new generation demand we have introduced 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.

6.2 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,

24
signage, & flags on shop, which identify that Lezat cola is a brand. Moreover, we will follow
consumer brand equity model to attain brand loyalty for our product.
Figure 2: Customer- Base Brand equity

6.3 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.

6.4 How we decided for brand extension?

If Lezat 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
7 Advertisement decisions of Lezat Cola
The field of advertisement is one area where Lezat Cola will always emphasize.

7.1 ADVERTISEMENT OBJECTIVE

Creating awareness about company and its Products

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

7.3 Advertisement Media

Lezat 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 Lezat for advertising. So we can say that Lezat will not only use electronic but print
media for advertisement as well. We will contact local cable operators to run our ads in their
local channels so that our ads can be view by maximum number of people and that create high
level of awareness for our drink.

Lezat Cola Company will use different mediums

 Print media
 TV commercial
 Billboards and holdings

8 Financials
8.1 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%

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Sports Sponsors 4 Million 20%
Awareness through Morning Shows 1 Million 5%

Figure 3: Advertisement Budget

BudgetAdvertisement

Sport Sponsors
20%
TV Adds
40%
awareness through Morning shows
5%

Print Media adds 8.2 R

10% O
Billboards I
25%

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

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28
 8.3 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

Figure 4: 24 Months sale forcast

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8.4 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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9 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.).

Secondary data from library reports

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