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Gordon Biersch Brewing Company

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Submitted By anjalipinjani
Words 10031
Pages 41
Bahria university Karachi campus
Business plan
Art on wheel
Group members:
Anjali Pinjani
Aqsa Rajput
Hina Kumari
Samia Irshad
Sumbal Saleem

TABLE OF CONTENTS
Description of Business: 3 1.0 Executive Summary 3 Business Idea: 6 Type of Organization 7 Marketing and sales strategy 7 Key success factors: 8 Short-term business goals: 8 Long-term business goals: 8 Mission 9 Vision 9 Socially responsible organization. 10 4.0 Opportunity Analysis & Research 10 Target customer: 11 4.1 Industry Analysis 11 Future Outlook and Trends 12 Market Segmentation 12 Industry and Market Forecast 13 4.2 Environmental Analysis 13 SWOT Analysis 13 Competitive Analysis 14 Analysis of Competitors 14 5.1 Products/Services 17 Products 17 2.2 Services 19 Meeting customer needs: 20 Pricing 21 Type of Payment 21 5.3 Promotion 22 Publicity for your organization 25 Public Relations & Publicity 25 Distribution 26 Access routes : 26 6.0 Management & Operations 27 6.1 Management Team 27 6.2 Research & Development 29 6.3 Facilities 30 Machinery and Equipment 30 Technology Utilization 30 Inventory, Production, & Quality Assurance 30 Production process 30 Production-distribution channel 31 Flow of Orders 31 7.0 Financial Analysis & Projections 34 Record keeping system. 34 7.1 Sources & Uses of Capital 34 Cash reserve & start-up capital: 35 Sources of financing 36 Bootstrap financing 37 Balance Sheet Projections 37 7.4 Income Statement Projection 40 7.5 Ratio Analysis 41 7.7 Risks & Assumptions 41 External factors to be disclosed as substantial risks. 42 Funding Request & Exit Strategy 43 Amount & Type of Funds Requested 43 Advantages to Debt Financing 45 Appendices 46 Sample Promotional Materials 46 LOGO 47

Description of Business:
This business will provide artistic material and services to the people who are interested in the culture of Pakistan. The primary focus of the business is to promote culture and local talent of Pakistan using artistic concept that is used while designing local trucks and vans. The services will include painting walls, doors, windows etc. Customized orders would be taken to produce products like handbags, decoration pieces, T-shirts having our cultural artistic work drawn over them.
This document has been prepared to provide the reader with information about our company, including business structure, company goals, projected growth, venture capital requirements, start-up costs, an investment analysis and the industry trends.
1.0 Executive Summary
In recent years, Pakistan has grown and changed both internally and externally in terms of policy and perception. Due to acts of terrorism, the world’s view of the country has become somewhat tainted.
The perfect rationale for Branding the Truck Art is to dispel the negativity that surrounds the country internationally and secondly will allow a greater degree of promoting our unique and diverse culture and heritage. Truck art is an organization committed to preserving and promoting the unique, flamboyant form of folk art in Pakistan.
It has been observed in recent years that the demand for aesthetic related products have been continually decreasing in Pakistan. The reason being the association of Pakistan with terrorism and violence. There have been few foreign investments done in the past few years hence; our focus is to develop a new sense of cultural representation and artistic promotion through our firm “Art on Wheel”. Our products would promote the rich and unique culture of Pakistan.
Previously this Truck Art was only available in the buses and trucks and it was not branded due to which this aesthetic art was not much known nationally and internationally but after branding we will be able to promote this distinctive and unusual art nationally. Art on Wheel will introduce this distinctive art in mugs, bags, wallets, decoration pieces, clocks, t-shirts, wall paintings, door painting with truck art etc. By branding the truck art we will be able to represent our rich culture in the biggest form of representational art of the country. Art on Wheel outlet will be in Jinnah super. This outlet will contain all the products having truck art on them. Art on Wheel garage will be in G-8 where different craftsman and painters for painting of the art in different products will be available. Thus Art on Wheel will be providing products as well as services. The Art on Wheel will represent our Idealized elements of personal and communal life of our culture, Elements of political and national life, Talismans, trinkets, and clothing, Talismans or religious symbols, obvious religious symbols and images. Art on Wheel will also promote corporate social responsibility by following ways: * We will use lead free paints to avoid the environmental pollution. * We will arrange talent hunt program in different schools and colleges, in which there will be art competition and winner will get our products.
The competition we face is from organizations that are already offering products which they claim to be an insignia of our culture, dealing in decoration pieces, wall hangings, hand crafted bags, folders & files, rugs & carpets, cushions. Our unique services will give us a competitive edge over our competitors. Our motivation to represent Pakistan and brand this previously unbranded art form makes us distinctive in this field.

Our target market consists mainly of foreigners, young and educated Pakistanis, vivacious patriots who are willing to embrace the striking culture of our country. We have no particular demographic segregation in our target market. All we aim at is the aesthetic appreciation of our culture to be brought to the fore front. We do realize that at the moment people are not aware of truck art as a separate art form and usually consider it as unsuitable for themselves and only utilized by the automobile industry and that too to a certain extent. We intend to change that perception and make them aware of our varied services and product range that would cater to our target market and their families.

Our products include a wide variety of products including bags, diaries, mugs, T shirts, pens, cushions and other similar goods. Our suppliers would provide us with the raw material for designing and we will transform them in our art form and cultural outlook. Other wise our products also categorize wall and car painting, therefore our artists would be available in the garage for manufacturing of our customized products. Our business mostly focuses on customization, meeting consumer specifications hence that is an integral part of our mission statement.

The main art work, painting and sketching would be done in the Garage located in G-8 market. In this garage our received orders would be transferred at our outlet and manage the painters and artists to create the required design pattern on our products. Basically our line of work is more focused on labor intensive with the exception of printing machine that would print the designs on items like T shirts, bags, etc. Our suppliers include suppliers of paint (all types), and other raw decoration pieces, mugs, fabric, diaries, pens, etc. Also fabric, oil and car paints would be required along with paints used in printer machine.
Our market strategy focuses on many aspects that would bring us closer to our customer and position us in a suited place in their mind. In order to penetrate in the market, we aim to introduce our product and services at prices set lower than that of the competitors. We aspire to target price conscious people who are in a majority in an inflation struck nation like Pakistan. This strategy will allow us to penetrate the mass market immediately and eventually increase the sales volume over time that would allow us to move towards a larger market share. It will also serve as an entry barrier to our competitors as they would not be able to introduce goods at such reasonable prices as we would. Our initial focus is on gaining a bigger market share and brand loyalty.
Art on Wheel Inc. has its outlet in f-6 where all the items would be displayed and orders for customization would be taken. Hence the order would be taken and the goods will be delivered from the same place that is the outlet.
Our objective is to position our brand in such a way that it indicates Truck Art as one of Pakistan’s most enriched Cultural Heritage. We want to achieve this through advertisements, public relations and other communication techniques. We are of the belief that when it comes to brand a country’s culture and communicate it print advertising and promotions are the best way to do so. We want to use our communication channels effectively in creating strong, favorable, and unique brand associations and eliciting positive judgments and feelings about Pakistani culture and art. Our communication channels would include advertisement through print media, pamphlets, event marketing and sponsorship, public relations and publicity.
In future Art on Wheel Inc. would expand its product line to painting frames of mirrors with truck art, jewellery, bed sheets, bathroom accessories and a few more of the same kind according to the response of our target audience. Also we want to open our outlets on varied locations all over Pakistan and maybe aim to go international as well. We also wish to open a restaurant in the future full of contemporary Pakistan art and cultural heritage.
We will do our auditing in every 3 months to apply product mix expansion or product mix contraction strategy. We want to identify our best SBU and then employ our major share of resources to that particular item. Any product line that we perceive as unprofitable would be eliminated from our list of offerings. Performance of the painters will be reviewed and Inspection will take place regularly to ensure that no one deviates from the quality standards.
The form of ownership as described is a partnership. The liabilities and profits would be equally shared as our investment in the business venture is equal. There is no intervention of government and affiliated institutions. In case in the future our firm decides to go international, we will transform the ownership to a “corporation”. Currently there is an unlimited partnership and all partners are equally responsible for their liabilities. Art on Wheel Inc. is a flat organization having less no of partners and equal right of control and authority. The initial costs would also consist of costs incurred on agreements and contracts like partnership agreements, legal costs, registration fees, etc. Loans or enhanced capital contribution by partners will require pre decided specifications in the partnership agreement.
Our departments include finance, HR, marketing, R&D, technical and art and design department. Each department has a specified set of responsibilities which is jointly decided by all partners.
The lack of competitors or any past references is a big problem for our company because we will find it difficult to analyze financial statements etc. Financial analysis is done well if we already have a background financial history of the industry. Being entrepreneurs and first movers in this field we have to face this particular problem. However, market survey can reduce the risk to some extent. Our market is also uncertain as for a product range that we are willing to introduce in the market, the market is very new and unaccustomed to this change in trend. People may not like the cultural representation or may have different tastes. Also the recent impact of violence and terrorism on our nation is immense and our main objective is to counter that image and present a rich and friendly Pakistan in cultural aspects.
We also have contingency plans in case things don’t work out. We will eliminate unprofitable product lines and keep bringing innovations in existing lines.
Contribution by the partners in the business is equal. Initially we depend on our own investments but we predict that at a later stage we might require some bank investments in the form of loans that we aim to return in a 5 year time span.
Business Idea:
Target Market Factor of Target Market | Description | (who) Foreigners,Young & Educated Pakistanis | People with need of local culture to be seen on products , the designs of cultural heritage to be seen on different products. | (what)Decoration pieces,Wall hangings,Handcrafted bags,Folder & Files,Rugs & Carpets,Cushions | These products are introduced to give some uniqueness from other designs the companies make for their products, the uniqueness is the truck art used on the products. | (where) Initially in Islamabad, But have plans to extend it Nationwide & Internationally | As the business progresses, we will slowly bring it to the international and national level. | (why) To promote the Pakistani Culture | The culture of Pakistan is not seen globally in the products, this is the main idea to introduce our own products with the art of Pakistani culutre |
Type of Organization
Our Organisation Type Is MANUFACTURING . And it is an organisation for PROFIT .
Product/Service 1: Decoration pieces
Product/Service 2: Wall Hangings
Product/Service 3: Handcrafted Bages
Product/Service 4: Rugs & Carpets
Product/Service 5: Folders & Files
Product/Service 6: Cushions
Product/Service 7: T-shirts
Product/Service : Decoration Pieces
Product/Service : Coffee mugs & Office cups
Product/Service : Wall Paint/Car Paint Designs
Marketing and sales strategy Customer Need | How Your Business Will Satisfy It | People with the need of local culture on products such as t-shirts,hand bags etc | we will provide them with what they want by designing the truckart on these respective products . | Be different and stand out from the competition | Our unique services will give us a competitive edge over our competitors. | Think big and audit your time | No matter the size of your business, place a mental image in your mind as if you are the largest and most successful person in your industry | Hire top sales people | Sales people must understand their strengths and have a well-defined plan to reach their potential | Build relationships with your customers | Create a customer database and contact them on a regular basis | Key success factors: 1. The uniqueness in the design of the paints on the products. 2. Art on wheel will bring fun and creativity for al agel levels of people. 3. Programs are entirely customized and adaptive to ensure age and ability appropriate programming while gently pushing participant limitations in a positive and sensitive manner. 4. Art schools and art institutions in Pakistan are producing artists, educators, curators, and collectors, who are having an increasing impact in the art world and the media. 5. While workshop and short term programming is available, emphasis is placed on establishing long term, recurrent programming to secure maximum health benefit for participants.

Short-term business goals: 1. Our short term goal is to start our carrier with a good position in a reputed organization. 2. For the first couple of months we would be up for the training and development program, understanding the work methodology for proper stability and position in the organisation. Long-term business goals: 1. Long Term goal is to become a good team leader in Industry. 2. Llong term goal is to contribute a lot in society's development using my skills and knowledge

Owner | Percent of Ownership | Owner 1 | Equally divided (i.e: 20%) | Owner 2 | 20% | Owner 3 | 20% | Owner 4 | 20% | Owner 5 | 20% | Mission, Vision, & Culture
Mission
The primary focus of the business is to promote culture and local talent of Pakistan using artistic concept that is used while designing local trucks and vans.The services will include painting walls, doors, windows etc. Customized orders would be taken to produce products like handbags, decoration pieces, T-shirts having our cultural artistic work drawn over them.
Vision
Our vision is to promote the culture of Pakistan both at Local & International level in the future respectively. Core beliefs that are reflected in culture. Core Belief | How It Is Reflected in the Culture | We have a vision of promoting the local folk art on the products such as handbags,wall hangings etc. It has been used in the trucks and buses only. | The designs that we are going to promote itself reflects the culture of Pakistan as it is been used since many years on the transport vehicles such as trucks and buses but to a limited extent. | Its our belief that by the business plan mentioned above, if it turns out to be sucessful,it will not only be recognizes nationally but internationally also. | Our bussines actually depends on the Culture of Pakistan & the idea is taken by the same culture of folk art that we see on buses and trucks. | Socially responsible organization.
1. The idea is to attract the public into some creative works as recently of country is suffering from terrorism and very less creativity is seen nationwide.
2.The perfect rationale for Branding the Truck Art is to dispel the negativity that surrounds the country internationally and secondly will allow a greater degree of promoting our unique and diverse culture and heritage.
3.We would conduct creative and artistic competitions in colleges and universities to find the local talent and that would give them the opportunity to work for some creativeness apart from all the negativity in our country.

4.0 Opportunity Analysis & Research
Target customer: 1. Given the current market situation where customers are now extremely savvy. Branding Pakistan’s Truck Art will require an ad campaign that will target both domestic as well as foreign customers, increasing the scope and attractiveness of the offer.

2. The idea of getting your possessions customized is simple so the message delivered through ads will also be simple but it’ll have some creative edge which can be done by making the print ads exciting and showing the true picture and essence of Pakistan’s Truck Art and its Culture.

3. The target market is the youth, so they have some know how of the pros and cons of every product and service. Therefore specific data telling about the positive fats and related points associated with it will be emphasized on so as to attract a larger number of customers.

4. Points of parity and points of differences are already discussed above. In the ad these points will be shown effectively and correctly. So that to gain trust and a mind shares of the potential investor.

5. The ad will be able to persuade the potential customers and buyers and will show them the positives which will motivate the customers to come in for Art on Wheel Inc. products and services. The ad will be able to leave a picture in the minds of customers that when they make decisions of buying a new car, getting their home decorated, getting their accessories, Art on Wheel Inc. would come in their minds.
4.1 Industry Analysis * What is the industry or set of industries in which your organization operates (include the PSIC codes)?
Future Outlook and Trends
Pakistan, the country today is known for terrorism and extremism but it has beautiful culture and lovely people. Truck art represents our culture and heritage. Truck art concept is unique to Pakistan. People are also interested in these arts work and really want to have good collections in their homes.
We are also planning to develop interest in the people about this art. Our future plans are

* To conduct artistic and creative competitions among the students of schools so that to create awareness in the people that such product or service exists. * Sponsoring cultural events and activities will also bring useful results Market Segmentation The customers we are intended to target are Foreigners, young Pakistanis, and educated Pakistanis, vivacious patriots who are willing to embrace the striking culture of our country. Through our effort to promote our culture and heritage we will also be able to promote our culture at international level as well. Our target customers are usually those who are interested in the culture of our country. Only those are considered interested in these things whose necessities are fulfilled and have enough money to spend on their interests and habits. There is no gender differentiation. However some products like Cushion, decoration pieces are particularly designed for females Industry and Market Forecast
Industry and market forecast is very important for the new product launched in the market. Currently the residents of Pakistan do not have enough knowledge about the Truck Art. Some elite class people even think of it as a cheap art. Although some people really enjoy the poetry, the drawings, the colors etc. People do not think of it as it is promoting the culture and traditions of Pakistan. They think that only the buses, heavy weight trucks, rickshaws etc are painted. But with the launch of these unique products for the local residents it will serve as an attracting tool, because it not only promotes the traditional art but it will be presented in a modern and more likeable way. As youth is our main target market, the youngsters usually have a higher aesthetic sense and are more enthusiasts to practice and use different and unusual things.. We are planning to finance our product as our 1st priority and are not compromising to marketing budget at least at the initial phase of our product. From business perspective, our goal is to develop a strong and long lasting relationship with our customers and provide them with the best quality services. We not only want to satisfy our customers but we want to make them delight by the services and products we offer.
4.2 Environmental Analysis
SWOT Analysis Strengths * Unique selling points.(UPS) * Resources, Assets, People * Experience, knowledge, data * Financial reserves, likely returns * Marketing - reach, distribution, awareness * Innovative aspects * Location and geographical * Price, value, quality | Weaknesses * Lack of competitive strength * Reputation, presence and reach * Financials * Own known vulnerabilities * Timescales, deadlines and pressures * Cashflow, start-up cash-drain * Continuity, supply chain robustness * Reliability of data, plan predictability * Morale, commitment, leadership | Opportunities * Market developments * Competitors' vulnerabilities * Industry or lifestyle trends * Technology development and innovation * New markets, vertical, horizontal * Niche target markets * Market need for new USP's * Market response to tactics, e.g., surprise * Major contracts, tenders | Threats * Environmental effects * IT developments * Competitor intentions - various * Market demand * New technologies, services, ideas * Vital contracts and partners * Obstacles faced | * We plan to extend our business slowly , we would attract foreigners in the initial stage, when our business gets succesful, we would start it internationally by taking part in the international exhibitions etc.

Competitive Analysis Analysis of Competitors
The main focus of our products and services will be to promote our rich and unique culture and heritage. And In this regard we will be facing strong competition from the companies, shops, organizations that are already offering products which they claim to be an insignia of our culture. They may include the businesses dealing in Handicrafts including, * Decoration pieces * Wall hangings * Handcrafted bags * Folders and files * Rugs and carpets * Cushions And other things that are used everyday. These all are competitors. Our unique services will give us a competitive edge over our competitors. We are landing with the aim of giving a tough time to our competitors and making them believe that we have the stamina and we can do what we think to do. Dreams are meant to be achieved and we are a group of highly motivated individuals who want to make Pakistan’s culture represent able in the forms that are acceptable and suitable for both being used and decoraton purposes. International Competitor | Method of Competition | we will be facing strong competition from the companies, shops, organizations that are already offering products which they claim to be an insignia of our culture. They may include the businesses dealing in Handicrafts including, Decoration pieces, Wall hangings, Handcrafted bags, Folders and files,carpets and rugs,cushions. | Our unique services will give us a competitive edge over our competitors. We are landing with the aim of giving a tough time to our competitors and making them believe that we have the stamina and we can do what we think to do. | Competitive Advantage Question | Competitive Difference (USP) | | | The Offer: What will be better and different about the products and services that will be sold by the business? | We offer the designs of local folk ard used on trucks and buses to be used on cars,walls as well as our products of the same design which includes handbags,t-shirts,files and folders etc. are of different and unique designs from other organizations. | Target Market: To make it as successful as possible, which customers should be the focus of the business? | Almost everyone, but to attract elite class and foreigners would be a perfect success to make it successful. | Production and Delivery Capability: What will be better or different about the way that offer is produced and delivered to those customers? | We have our workshops where customers can come to see a bunch of different design for their cars and walls.Our other shops would sell products such as handbags etc . | Tactis to carry out strategy: Tactical Question | Issues | Solutions | | | | Sales Plan: Where and how will you sell to your customers? | How to identify prospects and convert them to sales | Our objective is to position our brand in such a way that it indicates Truck Art as one of Pakistan’s most enriched Cultural Heritage. We want to achieve this through advertisements, public relations and other communication techniques. We are of the belief that when it comes to brand a country’s culture and communicate it print advertising and promotions are the best way to do so. | Market Communications: How will you communicate with your customers and make them aware of your business offer? | How to make customers aware of your offer; how to attract them to the business | Our communication channels would include advertisement through print media, pamphlets, event marketing and sponsorship, public relations and publicity. | Operating Plan: How will you manage your internal operations? | How to make the business go, and determine who will perform the tasks | | Budget: How doyou plan to manage your revenues and expenses? | Possible sources of revenue; possible items that have to be purchased | The form of ownership as described is a partnership. The liabilities and profits would be equally shared as our investment in the business venture is equal. | Barriers to entry: The lack of competitors or any past references is a big problem for our company because we will find it difficult to analyze financial statements etc. Financial analysis is done well if we already have a background financial history of the industry. Being entrepreneurs and first movers in this field we have to face this particular problem. 5.0 Marketing Strategy & Plan Posiioning Art on wheel is the Fashion/arts industry,This business will provide artistic material and services to the people who are interested in the culture of Pakistan. The primary focus of the business is to promote culture and local talent of Pakistan using artistic concept that is used while designing local trucks and vans. The services will include painting walls, doors, windows etc. Customized orders would be taken to produce products like handbags, decoration pieces, T-shirts having our cultural artistic work drawn over them to almost everyone but specially to elite class who think that truck art is not ethical as well as to the foreigners who find it really interesting seeing them on the buses and truck. 5.1 Products/Services
Products
The products introduced are as follows.

Type of Product | Name of Product / Brand | Sample | Rugs and carpets | Artifact | | Hand bags | Funk Asia | | Files and folders | Relic | | Sofa and floor cushions | Flamboyant | | Decoration pieces | Allure | | Wall hangings | Panache | | T-shirts | Gaudy | | Coffee mugs and office cups | Knack | |

2.2 Services
The venture art on wheel inc. will offer the service of providing elegant and stylish truck art designs for room’s wall, centered walls and even on their cars and accessories.
The name for paint designs is Dell Arete.

* Wall paint designs * Car paint designs

Meeting customer needs: It will meet the need of those People with the need of seeing more cultural heritage in the local products would find it really interesting. Only those are considered interested in these things whose necessities are fulfilled and have enough money to spend on their interests and habits. Product/service in the product life cycle Life Cycle Stage | Applicable? (y/n) | Impact | Introduction | Yes | less impact but has ability to grow. | Features and benefits of the product/service : Product/Service | Feature | Benefit | Handbags | Designs with local folk art | Shades of the local Cultural Heritage | Wall Hangings | Designs with local folk art | Shades of the local Cultural Heritage | T-shirts | Designs with local folk art | Shades of the local Cultural Heritage | Carpets & rugs | Designs with local folk art | Shades of the local Cultural Heritage | Cushions | Designs with local folk art | Shades of the local Cultural Heritage | Files & folders | Designs with local folk art | Shades of the local Cultural Heritage | Wall paint | Not a normal paint, creative and artistic paint designs. | Shades of the local Cultural Heritage | Car paint | Style of paints done on the local buses and trucks. | Shades of the local Cultural Heritage | | | | Pricing

Market Penetration Pricing will be used to establish a strong hold on the market. Hence prices will be set lower than that of the competitors. By using this pricing strategy Art on Wheel Inc. will target the price conscious people who are in majority. Hence this strategy is expected to enable us in penetrating the mass market immediately and would also help us in increasing the sales volume over time that would allow us to move towards a larger market share. Also it will discourage other firms to introduce their competing product i.e. (an entry barrier) and would attract customers of local truck art painters and paint companies, handicraft shops to try our products which can then lead to brand loyalty. So initially in the introductory stage Art on Wheel Inc. will focus less on profit and more on increasing market share. However with a greater customer demand profits can also rise in the short run despite a low profit margin per product ratio.

Type of Payment
There are a variety of ways to pay for your purchases. In this organisation we use cash sales only.
Cash is one of the most common and familiar. Both paper money (of varying denominations) and coins are included under the larger category of “cash.” While cash has the advantage of being immediate, it is not the most secure form of payment. If it is lost or destroyed, that money is essentially gone. There is no recourse to recoup those losses. If you have a torn bill and are unsure whether it is still usable, check with your nearest bank. Cash is used exclusively at physical retailers. There is no way to use cash towards your online purchases.
5.3 Promotion Method | Message | Media | Channel | Why It Will Work | Advertising specialties | Stay top of mind, make a great impression. | Television, Radio, Newspaper, Magazines, Outdoor billboards, | Radio and online. | Because the company will give attracted views to customers of their products. | Banner ads | Remember the goal, stay low, make a promise. | Websites. Online ads. | Directories, news, technology, conversational. | To intending to generate traffic to a website by linking to it. | Billboards | They are designed to catch a person's attention & create a memorable impression very quickly. | cutting edge, large format, digital print technology | Television advertising. | For targeting audience alignment. | Blogs | To allow the owner to post messages and content | Displayed on websites. | World news, internet. | It is a process of views, analyzing, reflecting. | Broadcast media | Use to target audience. | Customers. | Internet, sports, radio. | Without broadcasting there would be no TV shows, News casts, Radio casts, etc. | Brochures | It is an effective headline for every section and exposes every fact. | Websites. | Brochures are distributed by mail, handed personally or placed in brochure racks. | Brochures remain one of the most commonly used tourist information services. | Business cards | A business card can make or break a client's first impression of your company. | Printing, flyers, posters, leaflets. | Business channels. | Because business cards get attention and showcase personality. | Catalog | Used to store errors, information etc. | Create multiple media catalogs containing any mix of videos, music, books. | Mail order, contacts. | All negative and positive aspects are mentioned in order to compile with firm’s laws. | Direct mail | To target the audience or market. | Social media. | Telemarketing | Because it is an important concept in throughout process | Directories | To organize files. | Magazine, newspaper, online media. | Global T.v. | Because it help search engines understand what your site is about and help improve your position. | Flyers | Tells about upcoming events, promotions. | Flyers distribution and newspaper. | Television, networks. | It gives general information, product listing pricing guide. | Networking | The purpose of sharing data. | Social network, social media. | Online communities, email. | It is all about building relationships and connections. | Newsletters | Connecting with important clients. | Magazines media. | Discovery channels. | To communicate with client about successful business. | Online store | Attract customers to sell products and services. | Phone, internet. | Television. | It is convenient, variety, comparisons of prices etc. | Print media | The right concept, design, and layout - can have a message, touch, and feel that makes it interactive. | News media. | Audience. | Effective targeting, cost effective option. | Promo items | Displaying your items to public | Television. | Promotional articles. | It is a useful marketing tool and can improve your brand. | Public speaking | Presenting the message. | Articles, public speaker. | Radio, Video shows. | It can boost your reputation and your company’s position. | Sales calls | Pre-recorded message is played. | Telemarketing class. | Face to face meetings. | It vaue the dream of customers | Samples | Giving a customer product before committing to purchase that product. | Networking letters. | Internet. | It is important to reach at correct point resulting by two or more tests. | Signs | Give relationship of itself and its object. | Internet, banners, paper media. | Telemarketing, discovery etc. | Signs are designed to attract customers. | Special events | It gives opportunity to customers. | Newspaper, internet. | Meetings, conference. | They are part of a strategic plan to cultivate future donations. | Sponsorships | it provides supports the group or individual. | Social media. | Sponsorships channel. | It is a growing form of marketing tool. | Telemarketing | It provide live operator or recorded message to ensure customers about product. | Research projects, telemarketing. | Email, business channels, videos. | It has direct contact with a target market. | Toll free # | It is for business to understand easily. | Websites, internet. | Discovery channels. | It creates more professional image of our business. | Website | Gives reputation to business by advertising your page. | Online, social media. | Web TV channels. | It is an opportunity, primary activity, branding, and measurements. |

Publicity for your organization
For Art on Wheel Inc., promotions are a very effective medium. The short term incentives that would be provided in the form of the pamphlets with the products can be very attractive for the customers. Special discounts can be given when a customer gets more than one product. A free mug, diary or pen can be given when a customer gets its car or house walls decorated. In order to obtain that coveted free publicity, you have to think like a media person and position your organization to the media in a way that meets their need to present interesting, engaging content for their audiences.
Public Relations & Publicity
PR is an important aspect of marketing. Relationships with customers can make or break a brand. It will be a good idea to promote Art on Wheel Inc. through PR so as to catch a better and even selective audience, maybe those customers who are on the high priority list. Art on Wheel Inc. will create so much hype that its presence and performance will speak for itself and people will also be attracted either by curiosity or by word of mouth - buzz marketing.
Ways to provide superior customer service.
1. Provide training to your employees on how to treat your customers.
2. Set the standards high for your employees and make sure they stick to it.
3. First of all, when you are working with customers, no matter what your occupation, think of it this way...How would you want to be treated if you were that client?
4. If your employer has a standard for customer service, make sure you know what it is and abide by it.
5. the only way to provide great customer service is to have a customer service standard, have a plan on how your employees will deliver your standards, and test the standards.
Customer database that we keep
Customer database type = stereotype
Questions that we ask...
Question 1: Demographics. Are they male or female? What age group? What socio-economic or ethnic group do they belong? What is their religious preference? What levels of education have they completed? What is their marital status? Do they have children?
Question 2: Psychographics. What are their lifestyle preferences? What kind of hobbies do they have? Do they tend to be conservative or liberal in their lifestyle and political beliefs?
Question 3: Financial. How much do they make in a year? Can they easily afford your product or service? On what do they regularly spend money?
Question 4: Information Gathering. What magazines, newspapers, email newsletters, blogs, and professional trade publications do they read?
Question 5: Communication. How do they prefer to interact -- in person, by email, by webconferencing?

Distribution
Art on Wheel Inc. has its outlet in f-6 where all the items would be displayed and orders for customization would be taken. Hence the order would be taken and the goods will be delivered from the same place that is the outlet. For the painting of cars Art on Wheel Inc. has its garage in G-8, where the cars would be painted by the hired craftsmen. And these customized cars would be delivered to the customers directly from the garage. For the purpose of painting of the walls and doors, the painters would go to the destination on their own to perform the services. Access routes : To extend our business on all sides of simultaneously. And it had access route that business is known or moved into and out of area.
6.0 Management & Operations
6.1 Management Team

Key Policies Towards employees: 1. Offering Long-term Security 2. Providing Opportunities for Responsibility and Creativity 3. Offering Positive Feedback 4. Paying Adequately 5. Providing Opportunities for Promotion Positive and rewarding workplace: 1. Turn Negative Attitudes Around 2. Minimize Turnover Rates, Absenteeism and Create Real Teams Who Get the Job Done! 4. More Fun & Better Systems on the Job Means Less Stress for Employees 5. Provide customer satisfaction, loyalty, supply costs, turnover, sick days, project completion, quality. Corporate Governance Plan: 1. Partners need ongoing assistance with data 2. External communications, building public will, and advancing policy 3. Organization focus over time. 4. Their value is unmistakable. 5. shares strengths in guiding vision and strategy Information for mentors or advisors:
Name: Sumbal Saleem
Title: Marketing Dept:
Organization: Art on wheel
City: karachi State: Sindh
Phone: 03442285825 Email: sumbal_saleem@yahoo.com Name: Hina Kumari
Title: Art & Design Dept
Organization: Art on wheel
City: karachi State: Sindh
Phone 03362842647
Email: simran_simy_97@yahoo.com Name: Samia irshad
Title: HR Dept
Organization: Art on wheel
City: karachi State: Sindh
Phone: 03432255544 Email: samiabahrian@yahoo.com Name: Anjali pinjani
Title: Finance Dept
Organization: Art on wheel
City: karachi State: Sindh
Phone: 0331392041 Email: anajli.pinjani@gmail.com Name: Aqsa Rajput
Title: R&D Dept
Organization: Art on wheel
City: karachi State: Sindh
Phone: 0331392041 Email: anajli.pinjani@gmail.com
6.2 Research & Development
Main duty of R&D is to identify new markets for the expansion of the venture in affiliation with the HR department. * Discover new, fresh and latest trends in the market. * Recognize the taste of the customers and categorize the range accordingly. * Continually make competitors analysis in order to keep in touch with the market.

Controls:
Performance of the venture and each of its products will be reviewed after every 3 months to apply product mix expansion or product mix contraction strategy. The company will identify which product line (Mugs, Cars, Decoration pieces, etc) qualifies for being recognized as the most important SBU of the firm. That product line will then receive most of the company resources. Those products that will not perform well even after modification will be excluded from the product line. Greater Customization would also be introduced based on the customer demand. Performance of the painters will be reviewed e.g. how many hours they worked compared to how much they had to work, did they waste any raw material during production etc. Inspection will take place regularly to ensure that no one deviates from the quality standards. Decisions will be made regarding whether to continue with the existing paint suppliers or not. In simple words each possible step will be taken by the management of Art on Wheel Inc. to control the operations of the company.

6.3 Facilities
Machinery and Equipment Machinery and equipment is not required to that extent as we have a business based on customized art, hence we require labor rather than capital and machinery. The professionals would do their painting. However, we do require printing machines for printing designs on some items like T shirts and mugs and diaries, etc. These machines would be operated by some skilled workers who would be familiar with such printing operations.
Technology Utilization
As such we are not acquiring any technological equipment as we are totally outsourcing our orders. We are hiring professionals for making and drawing purposes and we have contractors for different service packages that we are offering. Initially heavy investment in technological equipments doesn’t appear to be a very positive indicator for the business. Outsourcing will appear to be cheap and highly effective for the business initially. If we buy equipment, we then need to hire people as well to operate that equipment and we then need to invest on their learning as well. This will, in the long run, will only increase our operational expenses

Inventory, Production, & Quality Assurance
Production process
As our product is a form of art, our manufacturing process is a complicated procedure involving artists who have the know how of his particular art form. They are professionals in the field of truck art and other Pakistani art forms in general and would be proficient in painting and sketching. Our products would include a wide range of assortments including bags, diaries, mugs, T shirts, pens, cushions and other similar goods. We would purchase these goods from our suppliers and then design them in our art form and cultural outlook. Other wise our products also categorize wall and car painting, therefore our artists would be available in the garage for manufacturing of our customized products. We would provide painting material to our workers, hence painting material is par of our raw materials. The painters and artiss would be given a fixed salary on creating company specified designs and bonuses on introduction of new designs.

Production-distribution channel A channel of distribution or trade channel is defined as the path or route along which goods move from producers or manufacturers to ultimate consumers or industrial users. In other words, it is a distribution network through which producer puts his products in the market and passes it to the actual users. Stage of Channel | Artisan or Producer – responsible for production and maintaining quality, also a key player in developing new skills and materials for product development. These includes: | 1. Producer-Customer:- This is the simplest and shortest channel in which no middlemen is involved and producers directly sell their products to the consumers. | 2. Producer-Retailer-Customer:- This channel of distribution involves only one middlemen called 'retailer'. Under it, the producer sells his product to big retailers (or retailers who buy goods in large quantities) who in turn sell to the ultimate consumers | 3. Producer-Wholesaler-Retailer-Customer:- This is the most common and traditional channel of distribution. Under it, two middlemen i.e. wholesalers and retailers are involved. | 4. Producer-Agent-Wholesaler-Retailer-Customer:- This is the longest channel of distribution in which three middlemen are involved. This is used when the producer wants to be fully relieved of the problem of distribution and thus hands over his entire output to the selling agents. | Estimated delivery time Our suppliers would include suppliers of paint (all types), and other raw decoration pieces, mugs, fabric, diaries, pens, etc. All these goods have to be obtained in their raw form. As our product is more customization based, hence we would locate a supplier located near our garage so that we can have east access to these goods. Also fabric, oil and car paints would be required along with paints used in printer machine. Therefore our supplier of paint would be determined by who would give us all these types of paints at a cheaper price. Flow of Orders
Since the product or service that we are offering is customized therefore the first step that will be involved in buying process will be the placement of order by the customer. Orders initially will be placed by the customers at our outlet. Different samples, models and price lists will be there for the customers to choose from. The flow of order for our Product will be generally in this form:

For Services that we will provide on door step, the order flow will be a bit different.

Product/services quality assurance: Method | Planned? (y/n) | Rationale | Benchmarking | Yes | is promoting the culture and traditions of Pakistan. | Lean Manufacturing | yes | the launch of these unique products for the local residents it will serve as an attracting tool | Six Sigma | No | - | TQM | Yes | our goal is to develop a strong and long lasting relationship with our customers and provide them with the best quality services. | Other (identify) self-checking | yes | Self-checking of Quality of every product. | Types of insurance Type of Insurance | Needed (y/n) | Why? | Workers’ Compensation Insurance | Not | Not big business | Disability Insurance | Not | Not necessary | Inventory Insurance | Yes | Fear of fire/ theft | Property Insurance | Yes | Earth quick flood and fire can damage furniture and property | Liability Insurance | Not | Sales all on cash | Product Liability Insurance | Not | Sales all on cash | Business Income Insurance | Not | Becaused small business | Errors and Omissions Insurance | Not | No required due to computerized billing system | Life Insurance—Key Person Insurance | | Depend on partners |

Comply with federal, state, and local tax laws
As the timing rules for federal income tax purposes are constantly evolving, companies may have missed opportunities that could increase cash flow or ensure the proper deduction of certain items. Successful companies regularly evaluate their accounting methods for federal income tax purposes to recognize desired benefits. Law | Effect on Business | Skill Employees | No discrimination on age ,gender , culture basis | Salary range | Starts from 5000-7000 |

7.0 Financial Analysis & Projections Record keeping system. One of the first things a new business needs to decide is whether to do record keeping, or hire someone to do it. For new businesses, tight cash often means no money to hire bookkeeping help. But, keep in mind that even if you hire someone, the tax law places the responsibility on your head for seeing it is done right. So, you must have a basic grasp of records in any case. 1. Computerized Recordkeeping
Record keeping on a computer works on the same principles as a manual system, only the computer automates the process so it's faster and more accurate
A simple-to-use software program like Quicken Home and Business eliminates the need for a handwritten set of books. 2. Manual Recordkeeping
Small time operators often begin with—but soon outgrow—a manual record-keeping system. But if you decide to start with a manual system, as many small businesses do, you'll need to understand how to do it. For a lot of folks, particularly part-timers, the pencil and paper is adequate. Manual records satisfy the tax code as long as they are accurate and can be understood or explained if questioned. . Type of Account | Purpose | Which Institution? | Current business account | For all business transaction | MCB, HBL & ABL because largest branch network | Saving account | For generating income | HBL & ABL | Sources & Uses of Capital

Type of Capital | Amount | When Needed? | What Terms? | Material capital | | Materials , natural resources | Tools, buildings, infrastructure | Social capital | --- | Connections | Influence , relationship | Financial capital | | Money | Financial instruments, & securities | Intellectual capital | | Ideas , knowledge | Words ,images |
Cash reserve & start-up capital: Item | Cost | Estimate/Actual | Start-Up Expenses | Insurance Expense | | 100,000 | Marketing expense | | 300, 000 | Rent | 25,000 | 300,000 | Consultant fees | | 240,000 | Utilities | 10,000 | 120,000 | Total Start-Up Expenses | | 10,60,000 | | Start-Up Assets | | | Cash Balance for Starting Date | | 100,000 | Long-term Assets | | 10,00,000 | Total Start-Up Assets | | 11,00,000 | | Total Start-Up Requirements | | 21,60,000 | Sources of financing Funding Source | Equity | Debt | Current Borrowing | | 100,000 | Long-term Liabilities | | 410,000 | Contribution by the partners in the business is equal | 1650000 | | TOTAL START-UP INVESTMENT | 2160000 | Payback = Start-up Investment = 2,160,000 = 940.7665 Net Profit per Month 2,296 Financing sources that might be willing to invest in our business in exchange for equity:: An entrepreneur has numerous funding opportunities to raise business capital for his/her startup. It is important to conduct a fair amount of research in order to choose the best funding option available since a poor selection can greatly jeopardize the future of a company. Some criteria for obtaining business capital from any source (angel investors, commercial bank loans, and government loan programs) is a comprehensive business plan, good credit history, and strong commitment to stay debt-free. By understanding the significance of these 3 components and complying with such standards, the new business owner will soon be on their way to obtain the needed startup funding. A new enterprise needs capital to finance its everyday business expenses. This can include property rent, employee salaries, marketing expenses, inventory, day-to-day operations, and maintenance. * Working capital
The capital used to finance such daily operational costs is referred to as the “working capital” of the company. An entrepreneur should meticulously calculate the working capital before requesting a hypothetical amount as well as have a clear understanding of all the different funding options available in the market. * Capital loans
A capital loan is a large amount of money that is provided by traditional lending institutions and banks. There are short-term and long-term loans available to finance the daily operating costs of a small business. * Trade creditors
Entrepreneurs who do not intend for their company to go public in the near future may find it very hard to obtain such a loan. They can find funding from trade creditors who will lend money on the condition that the borrower purchases bulk goods from them. * Equity capital
Venture capitalists and angel investors are also popular sources of small business funding. A brilliant management team and a rapid future growth plan are some of the prerequisites of obtaining equity capital from business investors.
Bootstrap financing Yes we do plan on bootstraping financing. Bootstrapping is one of most effective and inexpensive ways to ensure a business' positive cash flow. Bootstrapping means less money has to be borrowed and interest costs are reduced. Here are three ways to bootstrap your way into new product development: 1. Work on your product at night and over the weekend while keeping your “day job.” 2. Get current customers to fund research and development. 3. Get customers who will be using the product to prepay for licenses or royalties.
Balance Sheet Projections | Year 1 | Year 2 | Year 3 | Assets | | | | Cash $_____ $_____ $_____ | 19800 | 25,000 | 45,000 | Accounts Receivable | - | - | - | Inventory | 586000 | 894800 | 1,276,000 | Prepaid Insurance | 25000 | 25000 | 25000 | Prepaid Office rent | 30000 | 30,000 | 30,000 | Utilities | 120,000 | 120,000 | 120,000 | Total Current assets | 780800 | 1094800 | 1496000 | Furniture | 760,000 | 760,000 | 760,000 | Capital Equipment | 240,000 | 240,000 | 240,000 | Total Fixed assets | 10,00,000 | 10,00,000 | 10,00,000 | Total Assets | 1780800 | 2094800 | 2496000 | Liabilities | | | | Accounts Payable | 677248 | 773986 | 985691 | Short trem loan | 76,000 | 75500 | 57200 | Total Current Liabilities | 753248 | 849486 | 1042891 | Long-Term Liabilities | 410000 | 410000 | 410000 | Total Liabilities | 1163248 | 1259486 | 1452891 | Owner’s Equity | | | | Capital | 590,000 | 590,000 | 590,000 | Retained Earnings | 27552 | 245314 | 453109 | Total Owner’s Equity | 617552 | 835314 | 1043109 | Total Liabilities & Owner’s Equity | 1780800 | 2094800 | 2496000 |

7.4 Income Statement Projection Income Statement for (Art on wheel) For the Year Ending December 31, Year | Year 1 | Year 2 | Year 3 | Net Sales Revenue (+) | 1080000 | 1404000 | 1825200 | Cost of Goods Sold (-) | 540000 | 617760 | 766584 | Gross Profit (=) | 540,000 | 78,6240 | 1,058,616 | Gross Profit(%) | %50 | %55 | %58 | Operating Expenses (-) | 118,000 | 260,000 | 85,000 | General Expenses (-) | 120,000 | 130,000 | 140,000 | Other Expenses (-) | | | | Office Rent | 30,000 | 30,000 | 30,000 | Utilities | 120,000 | 120,000 | 120,000 | Professional Fees | 45,000 | 50,000 | 70,000 | Insurance expenses | 25,000 | 25,000 | 25,000 | Total Operating Expenses | 458,000 | 445,000 | 470,000 | Net Income Before Interest & Taxes | 82,000 | 341,240 | 588,616 | Interest Expense (-) | 49200 | 49200 | 49200 | Taxes incurred (-) | 5248 | 46726 | 86307 | Net Income | 27552 | 245314 | 453109 | Net Income/Sales | 2.55% | 17.47% | 24.82% |
Ratio Analysis RATIOS | FORMULA | YEAR 1 | Current ratio | Current assets Current liabilities | 1.03 | Quick ratio | Quick assets Current liabilities | 0.18 | Debt ratio | Total debt Total assets | 0.65 | Debt to net worth ratio or debt to equity | Total debt Tangible net worth | 1.97 | Times interest earned | EBITTotal interest expense | 1.667 | Average inventory turnover ratio | COGSAverage inventory | 2.74 | Receivables turnover ratio | Credit sales Accounts receivable | 0 | Total assets turnover ratio | Net salesNet total assets | 0.606 | Net sales to working capital ratio | Net sales working capital | 39.19 | Net profit on sales | Net profit Net sales (annual) | 2.5% | Net profit to equity | Net profit Owners’ equity (or net worth) | 0.046 |

7.7 Risks & Assumptions Category of Risk or Assumption | Assumption | Significance | General economy | our product is a new launch and it is needed to be marketed. In this arena of poor economical condition, it needs a lot of budget. | planning to finance it as our 1st priority | Customer preferences | The truck art products are traditional and cultural products so its not important that everybody likes this new traditional creativity. | Branding the Truck Art will represent our culture and heritage | Competitive entrants/changes | Our product and services are very unique in nature having no strong competitor exactly in the same field | This is a biggest problem because we will find it difficult to analyze financial statements etc. | Costs of goods sold | The customers will choose color of their own choice and we will compose that color ourselves. | We will use lead free paints for the painting of products to avoid environmental pollution. | Contingency Plan | Due to uncertainty, it is important to have contingency plans as things not always turn out to be as planned. | In future Art on Wheel Inc. would expand its business to painting of framing of mirrors with truck art, jewellery, bed sheets, bathroom accessories etc. |

External factors to be disclosed as substantial risks. * Pakistan undoubtedly has a number of quality products but branding is very important as Brand is trust. Branding the Truck Art will represent our culture and heritage. Everyone is being presented the negative side of Pakistan. Lack of such trust thus leads to functional risks being embedded in the minds of people.

Funding Request & Exit Strategy Amount & Type of Funds Requested
It is anticipated that long run loan that would be taken would be used for the startup of the business. Contribution by the partners in the business is equal. Forecasted startup expenses and income statements, cash flows for the next five fiscal years are as follows:
8.1 Start-up Funding Capital Investment | 1,100,000 | Working capital | 1,060,000 | Total Investment | 2,160,000 | | Start-up Requirements | | Start-up Expenses | | Rent of office | (25,000 * 12) = 300,000 | Consultant fees | 240,000 | Marketing Expenses | 400, 000 | Utility Expenses | (10,000 * 12) = 120,000 | Total Start-up Expenses | 1,060,000 | Start-up Assets | | Cash Required | 100,000 | Other Current Assets | 0 | Long-term Assets | 1,000,000 | Total Assets | 1,100,000 | | Total Requirements | 2,160,000 | |

Assets | | Cash | 10,000 | Accounts Receivable | - | Inventory | 635000 | Consultant fees | 240,000 | Prepaid Insurance | 25000 | Prepaid Office rent | 30,000 | Utilities | 120,000 | Total Current assets | 1060000 | Furniture | 100,000 | Capital Equipment | 1,000,000 | Total Fixed assets | 1100,000 | Total Assets | 2,160,000 | Liabilities | | Accounts Payable | - | Short trem loan | 100,000 | Total Current Liabilities | 100,000 | Long-Term Liabilities | 410000 | Total Liabilities | 510,000 | Owner’s Equity | | Capital | 1650,000 | Retained Earnings | 0 | Total Owner’s Equity | 1650,000 | Total Liabilities & Owner’s Equity | 2160,000 |

Debt to finance:
YES. Debt is borrowing money from an outside source with the promise to return the principal, in addition to an agreed-upon level of interest. Although the term tends to have a negative connotation, startup companies often turn to debt to finance their operations. In fact, even the healthiest of corporate balance sheets will include some level of debt. In finance, debt is also referred to as “leverage.” The most popular source for debt financing is the bank, but debt can also be issued by a private company or even a friend or family member.
Advantages to Debt Financing * Maintain ownership: When you borrow from the bank or another lender, you are obligated to make the agreed-upon payments on time. But that is the end of your obligation to the lender. You can choose to run your business however you choose without outside interference.

* Tax deductions: This is a huge attraction for debt financing. In most cases, the principal and interest payments on a business loan are classified as business expenses, and thus can be deducted from your business income taxes. It helps to think of the government as a “partner” in your business, with a 30 percent ownership stake (or whatever your business tax rate is). If you can cut the government out of the equation, then it’s beneficial to your business.

* Lower interest rate: Furthermore, you should analyze the impact of tax deductions on the bank interest rate. If the bank is charging you 10 percent for your loan, and the government taxes you at 30 percent, then there is an advantage to taking a loan you can deduct. Take 10 percent and multiply it by (1-tax rate), in this case it’s: 10 percent times (1-30 percent), which equals 7 percent. After your tax deductions, you’ll be paying the equivalent of a 7 percent interest rate.
Lisencing the business:. * By using licensing the Client can save up to $50,000 or more in legal and franchising fees and costs. * The Client can get started selling licenses and receiving income in two weeks…not six months to a year as is usually the case in franchising. * Unlike franchises, Licensees are subject to no significant special State or Federal filings, offerings or disclosure regulations (often including past financial statements). * Some franchise lawyers scare clients away from considering licensing because often (i) the lawyers do not fully understand “licensing” or (ii) because the lawyers make a great deal more money from franchising. * Like franchising, “Licensing” is a first class form of expanding a business; for example, Starbucks uses licenses in their non-corporate owned stores. The fact is, one cannot tell by physical appearance what is a franchise and what is a license.

Appendices
Sample Promotional Materials
. SLOGAN: Promoting Pakistan cultural heritage and traditions through modern art and architecture. Also it delivers that we are giving whatever is in fashion and is in. It is also protectable and acceptable in culture.
LOGO: it basically intends the style that our products will possess.…...

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Mountain Man Brewing Company Case Analysis

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961 Beer: Launching a Lebanese Brewing Company

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Mountain Man Brewing Company

...Background * Chris Prangle…. MBA graduate to manage the mountain man beer company * Guntar Prangle founded Mountain beer 1925. * Family owned business – inherited for 5 years. * Initially was called as West Virginia beer. * In 2005 …generating revenues $ 50 million and selling over 520,000 barrels of mountain man lager. * Price was $ 2.25 for 12-ounces serving and $4.99 for 6 pack in local convenience store. * Was priced similar to premium brands such as Miller and Budweiser. * Chris want to launch “Mountain Man Light” a “Light Beer” formulation of Mountain Man Lager. * Hoping to attract younger drinkers to the brand. * dark brown bottle packaging. * Last 6 years the sales of Light beer has been growing at a annual rate of 4% and traditional beer declining. * Mid 20’s were very supportive of this light beer. * Woman in her early twenties….. I like light beer and passé (outdated) . would like to try Mountain Man Light. * Brand played a critical role in the beer-purchasing decision. * Consumer considered taste, price, the occasion being celebrated, perceived quality, brand image, tradition and local authenticity. * Drink was for blue-collar, middle-to-lower income men over age 45. * Won awards for best beer championship. * Was consumed by working class males in the East central region on Chevrolet and John Deere. * Subjective attributes were – smoothness, % of water content, and drinkability. *......

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Mountain Man Brewing Company

...increasing. Mountain Man Brewing Company was considering whether to launch Mountain Man Light to attract more sales. Problem Mountain Man had a 2% decline in revenue each year while light beer was much more demanding. However, launching a new product was costly. Also, if they launch the new product, they don’t know if it should be under the Mountain Man brand name or using some other names. In all, it’s difficult to predict that if the new product is profitable. Analysis The light beer consumption was 50.4% of the total barrels in 2005 with a 4% 6-yr CAGR, which means the market size would be 22.8 million in 2010. The main consumer of light beer spent aged from 21-27, although they represented only 13% of the U.S adult population, they accounted for more than 27% of total beer consumption. And these numbers were still growing. It would be a huge opportunity to launch Mountain Man light beer and take up some market shares. However, there was another question: should this light beer product be introduced under Mountain Man brand name, or by a different name? If the new product was under Mountain Man, the established company image could help reduce advertising cost, but downside is that it might alienate existing customers and erode brand equity. If the product was introduced by some other names, there would be neither brand dilution nor cannibalization, but the company would have to invest more on advertising and something else. Net revenue for the company was $50,440,000......

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