Executive Summary

Nowadays, in our hectic lives, ladies face a general problem

matching pair of shoes with their costumes and a new pair of
shoes for new costumes.
Using this once will make you a loyal believer of its advantages,
which the industry has never witnessed before.
Our mantra is “INNOVATION AND CUSTOMER SATISFACTION
LEAD TO SUCCESS”.A product is not only a product it is a
bundle of qualities and services, our shoes will be environmental
friendly as we will use those materials which will bio degrade self.
Since our shoes upper leather changeable so we will provide
different styles of upper leathers with a pair of shoes you get five
types of upper leathers with our exclusive shoes which a
customer can purchase and change her shoes according to his
choice.
Pakistan's estimated population in 174,578,558 (July 2009) is over
making it the world's sixth most-populous country, behind Brazil
and ahead of Russia. Due to high birth rate urban population will
double in the next 20 years causing more and more opportunity
for the promotion of shoes business.
Matching shoes keep on observing and predictions the changes
of new or existing cultural trends in areas such as fashion, music,
films, television, youth culture and lifestyle. We carefully
research that what will be the new colors and designs for the next
upcoming season, for this we pick the themes and colors from Gul
Ahmad lawn prints, an idea from western designer’s collections
and from the Indian entertainment media. Initially, we are 100%
depended on our venders designs but our target is relaying 30%
on our venders and 70% of our own design because of tough
competition in footwear market as well as due to the design theft
we are more focusing on our own designs and styles. Focus is to
target the shopping areas where shops for ladies accessories and
products are available. The plan involves opening up outlets
wherever the outlets of Stylo and ECS are already operating.

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 Vision statement

To grow as a dynamic, innovative and market

driven domestic
Manufacturer and distributor, with footwear as our
core business, while maintaining a commitment to
the country, culture and environment in which we
operate.

Mission statement

To be successful as the most dynamic, flexible and

market responsive organization, with foot wear as
its core business and get maximum satisfaction
level of our customers.

Sole
The bottom of a shoe is named the sole.
Insole
The insole is the interior bottom of a shoe, which sits directly
beneath the foot. Many shoes have removable and replaceable
insoles, and extra insoles are often added for comfort or health
reasons (to control the shape, moisture, or smell of the shoe).
Outsole
The outsole is the layer in direct contact with the ground. The
material of the outsole depends on the function, dressiness, and
quality of the shoe, but is generally very durable material, since it
experiences the most stress. Dress shoes have leather outsoles;
casual or work-oriented shoes have outsoles made of natural
rubber or a synthetic imitation. The outsole may comprise a

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single piece, or may comprise separate pieces of different
materials. Often the heel of the sole is rubber for durability and
traction, while the front is leather for style.

Heel
The bottom rear part of a shoe is the heel. These come in a
variety of sizes and are usually made to support the large
stresses applied to the heel of the foot. They are often made of
the same material as the sole of the shoe. This part can be high
to make the person look taller, or flat
Vamp, or upper any shoe has an upper part that helps hold the
shoe onto the foot. In the simplest cases, such as sandals or flip
flops, this may be nothing more than a few straps for holding the
sole in place. This part is normally decorated or is made in a
certain style to look fashionable and attractive for the buyer.

BUSINESS RATIONAL
Ladies face a general problem matching pair of shoes with their
costumes and a new pair of shoes for new costumes. Since our
shoes upper leather changeable so we will provide different styles
of upper leathers with a pair of shoes you get five types of upper
leathers with our exclusive shoes which a customer can purchase
and change her shoes according to his choice.

MACROECONOMIC INDICATORS OF PAKISTAN

DEMOGRAPHY OF PAKISTAN
The population of Pakistan was 32.5 million in 1947. Over the last
fifty-five years, it has increased by four folds reaching to a figure
of 156 Million approximately. It is expected to 172 million marks
in the year 2010. The demographic details of Pakistan’s
population are
Given below:

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 Demographics of Islamic Republic of Pakistan

Demography of
Pakistan July 2009

Population of Pakistan, 1961-2003

Pakistan's estimated
population in Population: 174,578,558 (July 2009)
174,578,558 (July
2009) is over making Growth rate: 1.6%
it the world's sixth
most-populous Birth rate: 31 births/1,000 population (2009)
country, behind Brazil
and ahead of Russia. Death rate: 8 deaths/1,000 population (2009)
During 1950-2008,
Pakistan's urban Life 63.39 years (2009)
expectancy:
population expanded
over sevenfold, while –male: 62.4 years (2009)
the total population
increased by over –female: 64.44 years (2009)
fourfold. In the past,
the country's Fertility 3.58 children born/woman (2008 est.)
population had a rate:
relatively high growth
rate that has,
however, been
Age structure:
moderated by
0-14 years: 36.7% (male 33,037,943/female
31,092,572)

15-64 years: 59.1% (male 53,658,173/female

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49,500,786)

65-over: 4.2% (male 3,495,350/female

3,793,734) (2009 est.)
declining fertility and birth rates. The population growth rate now
stands at 1.6%.

Population
174,578,558 (July 2009 est.)

Age structure
0-14 years: 36.7% (male 33,037,943/female 31,092,572)
15-64 years: 59.1% (male 53,658,173/female 49,500,786)
65 years and over: 4.2% (male 3,495,350/female 3,793,734) (2009 est.)

Population growth rate

1.6% (2009 est.)

Birth rate
25.89 births/1,000 population (2009 est.)

Death rate
7.21 deaths/1,000 population (July 2009 est.)

Urbanization
Urban population: 36% of total population (2008)
rate of urbanization: 3% annual rate of change (2005-10 est.)

Sex ratio
At birth: 1.05 male(s)/female
under 15 years: 1.06 male(s)/female

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15-64 years: 1.05 male(s)/female
65 years and over: 0.88 male(s)/female
total population: 1.04 male(s)/female (2009 est.)

Infant mortality rate

Total: 67.36 deaths/1,000 live births
male: 70.65 deaths/1,000 live births
female: 63.91 deaths/1,000 live births (2009 est.)

Life expectancy at birth

total population: 65.26 years
male: 63.51 years
female: 67.11 years (2009 est.)

Total fertility rate

3.43 children born/woman (2009 est.)

POPULATION GROWTH

Achieving a world of population in balance with its environmental

resources is crucial to the future of our planet and the welfare of
its people. Population growth is a complex issue that directly or
indirectly impacts all aspects of our lives and the conditions under
which we live.
During the past 25 years, cultivable land has increased by 27
percent compared to 98 percent increase in population.1 Due to
high birth rate urban population will double in the next 20 years
causing more and more opportunity for the promotion of furniture
business.
At present year 2005-6 the annual population growth rate is
around 2.25 in country.
Pakistan’s population will be twice over in less than 32 years.
Punjab is the most thickly populated area and Karachi is the most
densely populated city. Keeping in view the growth rate of
population of the country it is likely that housing requirements
will enhance and

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Automatically demand for home and office furniture will be
increase.

DEMAND & SUPPLY

On the basis of present population and assuming the per capita
consumption of one pair, the present estimated domestic
consumption is 160 million pairs as there are no imports of
Footwear in the country, to match the annual growth in
population projected future requirement of footwear must be 8%
for local consumption and 20 %growth for export.

Accessories to shoes
Shoe tree
- placed inside the shoe when user is not wearing it, to help
maintain the shoe's shape

Shoe polishing equipment:

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Shoe polish - a waxy material spread on shoes to improve
appearance, glossiness, and provide protection Shoe brush and
polishing cloth - used to apply polish to shoes.

Overshoes or galoshes:
- A rubber covering placed over shoes for rain and snow
protection

COMPETITOR ANALYSIS
MATCHING SHOES has three direct competitors in the market.
STYLO:
They started with one rented outlet in Lahore in 1974, to
becoming the largest selling ladies’
Shoes brand in Pakistan and the largest ladies shoes retail
network in the country as well, Stylo Shoes has come a long way.
They are currently present in 16 cities with 27 outlets and plan on
expanding further in the coming months.

Ehsan Chappal Store

First outlet opened in 1954 in Anarkali and soon became a
ragging success for its excellent quality and designing. Since then
we have been expanding operations in the fields of
manufacturing, importing exporting and retailing. ECS owns
multiple brands of ladies and girl’s footwear, bags and
accessories including ecs, e-circle, effects and elements. All these
brands are exclusively available at ECS stores located at most
convenient locations in most major cities of Pakistan. ECS
currently have 8 branches and focusing on giving the superior
customer satisfaction to all the customers.
SHU-8:
Bata a multinational brand has recently open shu-8 for the
female market offering casual and fancy shoes. They currently
have only four outlets and planning to expand more in the
market.
Private Brands:
We consider them direct competitor, though they don’t carry any
brand name with them but still they are the biggest threat to the

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main players in terms of Sales, as they offer their products in low
prices so people tend to buy more shoes from them.
The ECS manager told us the estimated current market shares of
these two companies, which are as follows:
Market Shares
1. Stylo 36%
2. ECS 27%
3. Others 37%

MAJOR PLAYERS – FOOTWEAR OUTLET

Key Players Areas of Operations

Bata Pakistan Limited International

Service (Pvt.) Ltd Nation wide
Hush Puppies Nation wide
English Shoes Nation wide
Starlet (Pvt.) Ltd Nation wide
Borjan (Pvt.) Ltd Lahore & Surroundings
Stylo Shoes Lahore & Surroundings
Elegant Shoes Lahore & Surroundings
Milli Shoes National wide
Reboc Lahore
Ehsan Chappal Store Lahore & Surroundings
Dulhosie Shoes Lahore

MARKET RESEARCH

Product Research
MATCHING SHOES is continuously conducting product research
through the focus group just to improve their product quality and
sales target. It also helps them to look at what products can be
produced with available technology, and what new product
innovations near-future technology can develop.

Advertising Research:

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MATCHING SHOES is using localize promotion on cable network,
out door medium in the form of billboards and on different
magazine. They are also conducting the research to improve the
efficacy of advertising and analyzing audience levels of attention,
brand linkage, motivation, entertainment, and communication.

Brand Equity Research:

MATCHING SHOES conduct research that how favorably
consumers view the brand and like to stick with their brands.
According to STYLO management team, the brand equity is quite
low as females usually go towards attractive styles, design and
affordable prices.

Brand Name Testing:

We tested that what do consumers feel about the names of the
products? And it’s a feedback.

Commercial Eye Tracking Research:

MATCHING SHOES regularly examines their advertisements,
package designs, websites, etc by analyzing visual behavior of
the consumer.

Concept Testing:
MATCHING SHOES test the acceptance of their advertisement and
message concept among their target consumers.

Cool Hunting:
Soul keep on observing and predictions the changes of new or
existing cultural trends in areas such as fashion, music, films,
television, youth culture and lifestyle

Buyer Decision Processes Research:

In that research we determine what factors motivates people to
buy and what decision-making process they use. In there case,
customers usually go towards attractive designs and affordable
prices.

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Price Elasticity Testing:
As there is high inflation and raw material is quite expensive now
so we determine how sensitive customers are if MATCHIN SHOES
will change prices of their products.

Sales Forecasting:
We determine the expected level of sales given the level of
demand. With respect to other factors like Advertising
expenditure, sales promotion etc. According to them each of their
outlets has different sale targets according to its location. On the
other hand it’s our target that we will at break even after 3 years.

Location Research:
The well-known Liberty Market--the heart of Lahore, which itself is
the heart of Pakistan. But we are very much concern about the
good location for opening our outlets just to improve our target
sales.

Suppliers Research:
We usually find out the expert and experienced venders to work
with us so that they supply the best quality. They also have a
contract with them that they will not sell their designs to their
competitors.

Competitors Research:
We also be aware of each of our competitors moves so that we
make our strategies accordingly.

Research & Development:

Research and development is nowadays of great importance in
business as the level of competition, production processes and
methods are rapidly increasing. It is of especial importance in the
field of Marketing where companies keep an eagle eye on
competitors and customers.

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MARKET STRATEGY

STRATEGIC RECOMMENDATION

Marketing

Paper marketing is essential for attracting clients towards newly established business.
Once a reasonable clientele is established the stress on marketing can be decreased, as
it will be automatically done through word on mouth.
Major marketing is done through advertisement. This includes giving advertisement
in
Newspapers and magazines. An effective marketing campaign plays a vital role in the
success of business.
Regular and sustained marketing is required for a successful
business of retail shop. The important marketing channels would
be flyer distribution, Cable TV, etc. Regular advertisement
expense should be at least 1% to 2% of sales in such business.
Some marketing and promotional tips are as under:
• Existing customers are best referrals.
• Know customers’ needs.
• Frequent clearance sales
Pricing

Retailers have a basic philosophy towards pricing their product.

What is important is that they create and stick to a strategy for
pricing so as to convey a clear message to the consumer. The
market has certainly created the need for all retailers, even those
at the higher end, to become more value oriented. That is not to
suggest that you necessarily need to compete on price, only that
you be aware of providing consumer perceived value.
Some value pricing strategies are as follows:
• Provides the consumer with an incentive to become a repeat
customer by offering a future discount.
• Frequent clearance sales
• Include a gift with purchase
• Feature your discounted prices predominantly.

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Store layout and presentation

Today’s successful retailer is the one making the most profitable

use of every square foot of space in the store and in the
warehouse. Because space is costly, retailers need to take a
strategic approach to its use. Floor patterns, location of
merchandise, amounts of merchandise and the appropriate
displays are all key factors in determining space. Misuse of space
can be
as detrimental to success as poor Buying. It is very important for
every store to create a suitable atmosphere and appealing
presentations in order to trigger the consumer’s buying decision.
In a world where one can find identical merchandise in more than
one store, layout and presentation becomes a key-differentiating
factor. The proposed store should be air conditioned. There
should be proper arrangement of lightening.

Use of computer

The computer is an invaluable aid in processing the large number

of transactions and vast amounts of information involved in
managing a retail operation. The amount of data needed for
merchandise planning for example would require hundreds of
man-hours to produce, whereas a well-designed computer system
can perform the task in seconds. Software for inventory and sales
recording and management should be used to have updated data
at all the times. This software not only records each and every
sales transaction but also update stock
and cash position after every transaction.

Inventory
Stock of finished goods kept must be for 180 days by farseeing
major occasions, holidays, weather and Islamic events like Eid.
Supply source would be outsourcing from leading manufacturers
with own developed brands. There must be well-known imported
brand category and other footwear accessories like socks
polishes, laces and gifts for children. In order to keep pace with
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modern trends and analyze the needs, demands and desires of
our customer’s MATCHING SHOES is continuously working on
improving quality with affordable and elegant designs to become
a good market share in fashion shoe industry.
As we want to achieve 10% of total market share within a period
of 5 years. Our designer is NCA graduate; always try to come with
different and unique designs and styles. We carefully research
that what will be the new colors and designs for the next
upcoming season, for this we pick the themes and colors from Gul
Ahmad lawn prints, an idea from western designer’s collections
and from the Indian entertainment media. Initially, we are 100%
depended on our venders designs but our target is relaying 30%
on our venders and 70% of our own design because of tough
competition in footwear market as well as due to the design theft
we are more focusing on our own designs and styles.

Production Process / Suppliers

MATCHING SHOES have no production process as we are working

with different venders and we have about 100 – 150 venders.
They have different production capacities i.e. some venders can
provide 100 pairs of shoe per week and some are more than that.
Actually, Ehsan, Stylo and Soul has almost same vender base.
Sales Strategies:
Marketing and sales are very different, but have the same goal.
Marketing improves the selling environment and plays a very
important role in sales. MATCHING SHOES sales strategies are to
drive more
profits and business success. Basically, we gives sales target to
each and every outlet according to their location and they are
very successful in achieving that target.
Our goal is to increase the number of interactions between
potential customers and the sales team using promotional
techniques such as advertising, sales promotions, publicity,
creating new sales channels and new product designs. We focus
on the first week of the month because sales tend to be high
within that comparatively. On the other hand occasions are
treated extraordinarily.

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MARKETING PLAN
SEGMENTATION
“SEGMENT” – A market segment consists of a group of customers
who share a similar set wants.
The marketer does not create the segments; the marketer’s task
is to identify the segments and decide which one(s) to target.
Segment marketing offers several benefits over mass marketing.
We at MATCHING SHOES believe that we can create a more fine-
tuned product or service offering and price it appropriately for the
target segment.

BASIS OF SEGMENTATION FOR MATCHING SHOES:

GEOGRAPHIC SEGMENTATION:
Calls for dividing the market into different geographical units,
such as, nations, states, regions, cities or neighborhoods. We will
be operating basically in the Urban and Suburban areas and tend
to slowly and steadily expand business.
The initial plan was to capture the most footfall market areas.
Though a deep market analysis the following four outlets were
planned in the first phase of opening.
Super Location:
Top locations:
1. Liberty Market Lahore
2. Tariq Road Karachi
3. Bank Road Rawalpindi
4. Link Road Lahore

The immediate geographic target is the city of Lahore, Karachi,

Islamabad and Rawalpindi. First phase of openings of outlets is
targeted towards 3 outlets in Lahore, 1 in Karachi, 2 in
Rawalpindi, 1 in Abbotabad, 1 in Peshawar, 1 in Sahiwal and 1 in
Faisalabad. Focus is to target the shopping areas where shops for
ladies accessories and products are available. The plan involves

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opening up outlets wherever the outlets of Stylo and ECS are
already operating. Market footfall will be the focus for every new
outlet.

DEMOGRAPHIC SEGMENTATION
MACROECONOMIC INDICATORS OF PAKISTAN
DEMOGRAPHY OF PAKISTAN
The population of Pakistan was 32.5 million in 1947. Over the last
fifty-five years, it has increased by four folds reaching to a figure
of 156 Million approximately. It is expected to 172 million marks
in the year 2010. The demographic details of Pakistan’s
population are
Given below:
Demography of Pakistan 2006
Total Estimated Population 156 Million
Population Density: 185/sq. km
Population Growth 2.25%
Population Doubling Time: 32 Years
Birth Rate: 27.3 per 1000 population
In this the market is divided into groups on the basis of variables
such as age, family size, gender, income , occupation, religion,
generation, nationality and social class. We are basically catering
to females above 18years of age, adults and women.

PSYCHOGRAPHIC SEGMENTATION
In psychographic segmentation, buyers are divided on the basis
of lifestyle or personality or values. Moreover we have tried to
analyze the different personality traits of the individuals
surveyed. Office going ladies want something smart and
comfortable because they have to do all the chores (of the house
as well as of the office).

TARGETING
Target Markets
Target market is a female of all ages. Females are 51% of the
total population of Pakistan.
We target upper middle, middle and lower middle class.
The main target customers lie in urban and semi urban region.
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Social class:-
This will pay a vital role with the rise in brand image there will be
continues rise in the sale. Social class will be formed by many
clusters, which will affect buyers buying behavior mainly they are
occupation, social class, wealth, education. Shoes is very
diversified product we can’t focus on any single section so buying
behavior will change from social class top to bottom.
Our target will be lower middle, upper middle, middle class and
working class and try to cover 75% of the total customers Family.

POSITIONING:

We come in market with the positioning statement of

“MATCH YOUR SHOES WITHOUT LOOSING MONEY”

we have given about the product and we don’t say after wearing
it you will feel like heaven but it is down to the earth and we
believe in what we are giving its should be up to what we said .
competence is something which is related to reliable , intelligent ,
successful as you wear the you will know how successfully it
work and how reliable it is and you haven’t wasted your money in
things which you after buying is of no use to you but instead you
will feel like you have invested in right direction and you have
intelligently also and as it will work successfully you will come to
know how reliable it is and as we are using good material also
you can rely that you have invested your money at the right place
and is it is also serving the purpose for what it is bought.
As it will last long you will feel like what you have spent is not
wasted and you have utilized the whole money you have spent
you have not taken any wrong decision you right in taking the
decision you have taken because in some cases after people buy
things they feel that they taken some wrong decision but it will
not happen in our case you will feel satisfied at every part you
look because we believe in customer satisfaction , customer is
the first priority for us if she is satisfied we feel our efforts are not
wasted we feel our efforts come true .
Positioning:
Match shoes without losing money are our positioning statement.
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Advertising & Promotion:
However this is a masses brand but focused advertising and used
to create awareness.
Pricing:
Matching shoes pricing is designed to be competitive to the other
fashion shoe retailers.
BRANDING
MATCHING SHOES
As per the marketing concerns the company
Wants to penetrate into customer’s mind
Continuous advertising and publicity.

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BRAND AWARENESS
We uses print media to advertise in different areas for creating
brand awareness. It has increased the awareness through
repetitive exposure of its brand name in different places like road
side advertisements, newspapers and magazines. Its awareness
level is measured in terms of

• Brand recognition
• Brand recall
• Market share
• Feedback of the customer
• General survey (news paper, fashion magazine)

Our own marketing department survey Researcher will attract a

large number of buyers and win a larger market share by keeping
their prices comparatively low. The more buyers get attracted the
more market share will be grabbed by the product and thus the
objective of having 50% market share.

NEW PRODUCT DEVELOPMENT

New Product Idea

When we started thinking about developing a new product there
were so many ideas which came into our mind but the most
feasible and the most reliable idea was to produce ladies shoes.

Reason

• Less risk involved

• Everlasting market
• Huge number of potential customer
• Buyers is willing to pay for quality
This idea also provide us an opportunity to generate from a very
well established market which secure our investment for long
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time period and it also help us to achieve our break even point
with in short span of time.

CREATIVE STRATEGY
We modifying western design with eastern to give a new and
modern look; also have a designers to create seasonal and
occasional designs as per market demand. Our choice colors
according to the new upcoming seasonal colors and designs. We
usually pick the idea of new forthcoming colors from the textile
industries and from Indian entertainment industry.
On the first week of the month because sales tend to be high
within that comparatively. On the other hand occasions are
treated extraordinarily.
The market trends follow weather change and occasions. The
following occasions affect the overall design, color combinations
and materials.

• Eid
• Shadi season
• Summer season
• Winter season

Market trends are also being derived through Indian movies and
especially from star plus dramas. Color pallet is being assessed
by the movies. Trends in the fashion footwear market are
evolving and the style mantras of the past are no longer
applicable. There are new fashion icons and trends governing
consumer choices now. The buying habits for fashion-conscious
women consist of typically buying at least one pair of shoes per
month. Women generally purchase a pair of shoes to go with a
specific dress. Once the woman purchases the dress she will then
begin the long search for the perfect pair of shoes.
If any lady buys two pair of shoes then she is the part of our
lottery that is held after every six months and the first prize is
FRIDGE second COLOUR TV and third MICRO WAVE OVEN.

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On the purchase of Rs. 1000 or more we will give her a shopping
card.

BENEFITS OF SHOPPING CARD

• Card holders would be entitled to a 10% discount on every

purchase.
• Card holders would be the first to be informed of the latest
seasonal packages.
• You would be entitled to special gifts from MATCHING
SHOES on special occasions.

Top Shopper Bonus

Top shoppers will be awarded special bonuses or surprise
gifts.

ADVERTISING CAMPAIGN
Pre launch and launch day

We will show half advertisement 2 months before through

different mediums of promotion. In order to create curiosity in
buyers. We will put sample shoes for sale so that feedback can be
taken properly of the buyers and subsequent changes can be
bringing about it. 2 days before launching we will start showing
advertisement all around the country. In these 2 months our
maximum investment on video, audio and print adds. There will
be an advertisement on every channel at all possible time
because”JO DIKHTA HAI WOH BIKTA HAI”. We will take into
consideration radios also. We will be doing public gatherings
sponsoring shows and events. To sell a product it is necessary to
create a big brand image.
Secondly our competitors are multinationals with lots of money,
brand image and quality so it is necessary to hit the market on
right time and right place. On the day of launch we will hire trucks
and busses and show stage shows in mall roads where there is a
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big public gathering. For shows we will target in big cities so that
our target customers that are upper middle, middle and lower
middle class persons. Advertisements will be showing everything
and targeting on quality of product and our aims. Will try to show
that shoes are not just normal shoe
it is” SHOES MADE WITH LOTS OF RESEARCH” for every
individual customer.
One reason for this is because of being a new entrant and less
number of outlets in selective areas. Instead of playing a proper
30 or 60 seconds TV commercial over national channels its
preferred to play the add on local cables only to target those
areas where they have opened the outlets. Avoiding the national
TV channels commercials has saved cost. The planning shoes that
showing TV commercial in the cities where there is no stores
launched can hurt the brand image thus the decision for local
cable channels is better to save the image and to communicate
effectively. For promotion the management takes the following
steps

• Loyalty cards are given to customer to develop a closer relationship with

them and to support and encourage buying.

• In-house magazine is in the process.

• Promotional material is given to suppliers and distributors (wall clocks).

• Branding is maintained through the shop interiors.

ECS has always spent vigorously in such campaigns. They have

designed their own transport trucks with very attractive banners
of their brand to serve as an advertising agent. In girl’s colleges,
they advertise a lot by pasting permanent stickers of their logos
and colors on the benches and roofs. Furthermore, they also hold
stalls in girl’s colleges of their latest shoe variety to promote their
products into the population. On the last page, pictures of
Kinnaird College and Home Economics College are given for
demonstration. Also they advertise in fashion magazines as well,
like FAQ, G&G, etc. They get a good response from many fashion
institutes who see this brand in fashion magazines. Over the
period of time, they have changed their logo so many times. Just
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like Pepsi Co., who in 1996 spent USD500 million just to change
the color of its logo. This was for education. Coke would never
reach its stage right now if they were not educating the customer
about their product. Pepsi Co., were willing to spent that huge
sum just to ensure that their customer was not swept away by
Coca-Cola, where the latter was hosting the Olympics Games at
the home-town of Coke in Atlanta, Georgia, USA. The mass logo
color change by Pepsi is a way of educating the customer that
Pepsi is still around and was not out of sight. In the same way ECS
also keeps its way to better and improved features in all aspects.
They have experimented and maintained a lot of logos and got
different results every time; like readability problem, etc. Change
of logo also comes with great financial charges to change that
logo on every pad, every show, every bag, every outlet, etc.
However, now ECS thinks that they have come-up with a stable
brand logo this time. On the opening of new outlets, special
invitation cards, flyers and offers are sent to thousands of
existing customers.
OPERATIONAL PLAN Controls
•Quarterly Budgets or Mini Budgets are made.
•Decisions only top management can take.
•Monthly meetings are conducted for failed products.
•Decisions are taken on suggestions and feed back.

PROJECT INVESTMENT
Cost of the project will consist of the following.
Lahore Branch – Head Office – Warehouse
• Furniture & Fixture 1,500,000
• Office Equipment 700,000
• Vehicles 1,400,000
• Security deposit 960,000
• Pre-operating Expenses 110,000
• Total Fixed Cost 4,670,000
• Initial Working Capital 1,338,688
• Total Project Cost 6,008,688

THE UNIVERSITY OF LAHORE Page 23

Yearly Marketing Budget
Rupees in Thousands
Total Sales 2,567,201
Cost of Goods Sold 2,167,148
Gross Profit 400,053
Less Selling Expenses 131,497
Less Admin Expenses 97,796
Net Profit 170,760

Financial Projections
Project Summary

Project Cost Pak Rs.

Furniture & Fixture 1,500,000

Office Equipment 700,000
Vehicles 1,400,000
Security deposit 960,000
Pre-operating Expenses 110,000
Total fixed Cost 4,670,000
Initial Working Capital 1,338,688

Total Project Cost 6,008,688

Financial Plan

50
Capita % 3,004,344
Long term Loan 1,425,131
Short term Loan 1,079,213
Other Liabilities /
Creditors 500,000
Total Funds 6,008,688

THE UNIVERSITY OF LAHORE Page 24

 For Lahore Branch ( 1st Year )

Position Reqd. Salary / Month Total

15,0
Branch Manager 1 00 15,000
6,00
Salesmen 3 0 18,000
4,00
Helper 2 0 8,000
6 41,000
Other Benefits 10% 4,100
Gross Monthly Wages and
Salaries 45,100
Gross Wages and Salaries per
Annum 541,200

For Other Branches (2nd year onwards)

THE UNIVERSITY OF LAHORE Page 25

 Position Reqd. Salary / Month Total
10,0
Branch Manager 1 00 10,000
6,00
Salesmen 2 0 12,000
4,00
Helper 1 0 4,000
4 26,000
Other Benefits 10% 2,600
Gross Monthly Wages and
Salaries 28,600
Gross Wages and Salaries per
Annum 343,200

Cash-Flow Statement

For The Year 0 1 2 3 4 5

(1,627,8 (1,064,5 2,309,0 7,229,2 14,360,
Net Profit Before Tax 95) 89) 46 25 222
616,4 576,5 562,6 569,1 534,
Add Depreciation 00 40 32 81 968
22,0 22,0 22,0 22,0 22,0
Pre-operating Expenses 00 00 00 00 00
(989,4 (466,0 2,893,6 7,820,4 14,917,
95) 49) 78 06 190
Inc / (Dec) in Current
Assets
(838,68 (1,087,4 (1,482,5 (1,964,3 (2,548,1 (3,004,
Inventory 8) 18) 65) 98) 58) 788)
(960,00 (150,0 (210,0 (240,0 (150,0 (150,
Security Deposit 0) 00) 00) 00) 00) 000)
THE UNIVERSITY OF LAHORE Page 26
Inc / (Dec) in Current
Liabilities
Creditors & Other 500,00 (13,0 113,0 146,0 171,0 161,
Liabilities 0 00) 00 00 00 000
Change in Working (1,298,68 (1,250,4 (1,579,5 (2,058,3 (2,527,1 (2,993,
Capital 8) 18) 65) 98) 58) 788)
Net In/Outflow from
Operational Activity (1,298,68 (2,239,9 (2,045,6 835,2 5,293,2 11,923,
8) 14) 13) 80 48 402
(4,210,00
Capital Expenditure 0) - - - - -

Cash-Flow from Financial

Activity
Addition to long term 1,424,13
loan 1
(211,6 (243,2 (279,5 (321,3 (369,
Repay long term loans 45) 52) 80) 33) 321)
1,079,21 742,4 1,015,5 1,322,6 1,618,8 1,892,
Incur in short term loan 3 51 39 39 95 873
(33,5 (77,0 (461,8 (1,445,
Tax paid - 48) 44) 09) 845)
3,004,34
Owners Investment 4 - - - - -
(1,709,1 (1,306,8 1,801,2 6,129,0 12,001,
Net Inc / (Dec) in Cash 07) 74) 94 00 108
500,00 500,0 (1,209,1 (2,515,9 (714,6 5,414,
Cash in beginning of year 0 00 07) 82) 87) 313
Cash Balance ( End of 500,00 (1,209,1 (2,515,9 (714,6 5,414,3 17,415,
Year ) 0 07) 82) 87) 13 421

Income Statement
For the year 1 2 3 4 5

6,709,50 15,408,84 27,269,3 42,984,5 63,369,8

Revenue 0 6 63 48 11
Les 4,948,73 12,297,60 19,764,1 29,347,1 41,424,5
s: Cost of Services 0 0 94 93 60
1,760,77 3,111,24 7,505,1 13,637,3 21,945,2
Gross Profit / (Loss) 0 6 69 55 51

THE UNIVERSITY OF LAHORE Page 27

Les
s: Operating Expenses
Administration & Selling 2,965,57 3,652,32 4,537,0 5,580,3 6,559,1
Expenses 0 7 00 04 18
423,09 523,50 659,1 827,8 1,025,9
Financial Charges 5 8 23 26 11
(1,627,89 (1,064,5 2,309,0 7,229,2 14,360,2
Profit Before Taxation 5) 89) 46 25 22
Les 33,54 77,04 461,8 1,445,8 2,872,0
s: Income Tax 8 4 09 45 44
(1,661,44 (1,141,6 1,847,2 5,783,3 11,488,1
Net Profit After Tax 3) 33) 37 80 78
Balance Brought (1,661,4 (2,803,0 (955,8 4,827,5
Forward 43) 76) 39) 41

(1,661,44 (2,803,0 (955,8 4,827,5 16,315,7

Retained Earning 3) 76) 39) 41 19

THE UNIVERSITY OF LAHORE Page 28

Balance Sheet
CAPITAL AND
LIABILITIES 0 1 2 3 4 5

3,004,3 3,004,3 3,803,3 4,642,3 5,523,3 6,448,3

Paid up Capital 44 44 94 97 49 49
(1,661,4 (2,803,0 (955,8 4,827,5 16,315,7
Retained Earning 43) 76) 39) 41 19
3,004,3 1,342,9 1,000,3 3,686,5 10,350,8 22,764,0
Total Equity 44 01 18 58 90 68
1,425,1 1,213,4 970,2 690,6 369,3
Long term Loan 31 87 34 54 21 -

Current Liabilities
Creditors and Other 500,0 487,0 600,0 764,0 917,0 1,078,0
Liabilities 00 00 00 00 00 00
1,079,2 1,821,6 2,837,2 4,159,8 5,778,7 7,671,6
Short term Loan 13 63 02 41 36 08
33,5 77,0 461,8 1,445,8 2,872,0
Tax payable 48 44 09 45 44
Total Current 1,579,2 2,342,2 3,514,2 5,385,6 8,141,5 11,621,6
Liabilities 13 11 46 50 81 52
Total Capital and 6,008,6 4,898,5 5,484,7 9,762,8 18,861,7 34,385,7
Liabilities 88 99 98 62 92 20

ASSETS 0 1 2 3 4 5

3,600,0 3,600,0 4,399,0 5,238,0 6,119,0 7,044,0

Fixed Assets 00 00 50 53 05 05
616,4 1,192,9 1,755,5 2,324,7 2,859,7
Less: Depreciation 00 40 72 53 21
3,600,0 2,983,6 3,206,1 3,482,4 3,794,2 4,184,2
Net Fixed Assets 00 00 10 81 52 84
Pre-operating 110,0 88,0 66,0 44,0 22,0
Expenses 00 00 00 00 00 -

Current Assets
838,6 1,926,1 3,408,6 5,373,0 7,921,2 10,926,0
Inventory 88 06 70 68 26 14
960,0 1,110,0 1,320,0 1,560,0 1,710,0 1,860,0
Security deposit 00 00 00 00 00 00

THE UNIVERSITY OF LAHORE Page 29

Cash and Bank 500,0 (1,209,1 (2,515,9 (714,6 5,414,3 17,415,4
Balance 00 07) 82) 87) 14 22
2,298,6 1,826,9 2,212,6 6,218,3 15,045,5 30,201,4
Total Current Assets 88 99 88 81 40 36
6,008,6 4,898,5 5,484,7 9,744,8 18,861,7 34,385,7
Total Assets 88 99 98 62 92 20

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THE UNIVERSITY OF LAHORE Page 30