Lahore school of economics

14
Kinetic Advertisement Inc.
SME
Ali Ijlal
Kiran Maheen
M.Usamah Bakhshi
Muhammad Luqman
Waleed Baig

Company Summary
Kinetic Advertising provides unique and patented technology. It is a fully integrated 3D
projection platform that provides you with the most advanced modern projection technologies.
We distinguish ourselves though the unique specs of our products. Our products will offer our
consumers the extra attention that will make them stand out from the rest.
Company Ownership
Kinetic Adverting is privately held by a group of people.
Market research
Product
Most of our responders, 71%, said that t they will be more interested in renting the holocube,
thus for the first year we plan to only import holocube and rent that. The pricing for the
technology is given ahead.
Customers
Kinetic advertisements will be targeting the corporate sector in particular. Since it will be a new
introduction to the Pakistani market; Lahore initially, we will be charging a premium on the
services that we will be providing. This is the reason our customer base will include companies
who have major interest in marketing; which can be seen by their marketing budget. Our
customers will include beverage companies, automobile companies, telecommunication, banking
etc
We have a diverse range of customers that we are focusing. Our customers can be anybody from
fmcgs to retail and garment companies. Following is the graph of the industries that were used
for the survey

29%
29%
14%
14%
14%
Industry type
FMCG
Telecommunication
food and bevrages
Retail
Construction
Almost all of the responders took part in heavy advertising with 86% saying that they rely
heavily on advertising. 57% of the companies had a marketing budget bigger than 15crore. Coke
said that they do not have any specific marketing budget; they will use whatever is required for
marketing. 100% that is all of our responders said that they will use hologram for advertising and
71% said that they are even ready to extend their marketing budget for this technology.
Competition
The advertising industry has grown at a very high pace in past few years. The companies now
focus quite a lot on their advertising which is why the advertising budget is one of the highest
allotted budgets by all major companies nowadays. As the demand has increased, it has created
many opportunities which is why there are many advertising companies working and entering
the market. There is a large indirect as well as direct competition that we will be facing. It
includes the top advertising companies of Pakistan which have major customers which are large
companies operating in Pakistan.
From our survey we found out that TVCs is the highest used medium followed by billboards.

Our competitors were also found from the survey. Our major competitor is symmetry digital, red
tape media and pakmedia advertisement, which both hold 25% of the market each, followed by
mindshare, synergy advertisement at 13 and 12%
30%
10%
20%
40%
Medium used
billboards
Radio
print media
TVC's



Pricing
Since 71% of our responders said that they will be more interested in renting the technology thus
we plan to rent our technology. 63% of the responders wanted to rent this technology (HC40)
from 13000-15000, thus we used that figure to develop our pricing models.

Also since we will have a sole dealership with our respective companies who we get the
technology, we plan to make use of that factor and charge a premium price on our products for the
first few months. 86% of the responders said that they will rent the technology on need basis, thus
25%
25%
12%
13%
25%
Competitors
Symmetry Digital
Pak Media
advertisement
Mindshare
Synergy
Advertisements
Red Tape
12%
12%
63%
13%
0%
prices
7 to 10
10 to 13
13 to 15
15 to 18
18 above
our prices are priced on per day estimates. For those that want to rent it for 15 days or above, we
will give them a 10% discount.
HTC-15 Rent Charge= Rs.11000/day Estimated No. of days rented/month= 15 days
HTC-40 Rent Charge =Rs.15000/day Estimated No. of days rented/month=10 days
HTC-70 Rent Charge=Rs.40000/day Estimated No. of days rented/month=10 days
Proposed Location
We will need an office in DHA phase 6 area in Lahore because of the easy access to cantt,
Gulbreg and surrounding areas of DHA, where there are offices of companies like Nestle, Coca-
cola and etc.
In this phase the commercial area consist of 4 marlas plazas mostly and the rental cost of each
floor are as below:
1
st
floor 2.15 lakhs/month
2
nd
floor 1 lakh/month
3
rd
floor 76 thousand/month
4
th
floor 60 thousand/month
Different sections could be made in it and can be used for storage and cubicle offices.
This facility has a good parking area and this phase has an easy access to new airport Lahore. In
addition to that the locality has a good infrastructure with all facilities being provided such as:
Electricity, Sui gas and water.





























Conference Room
Storage Room
Office 1
Office 2
Office 3
Kitchenet
te
Eleva
tor
Washroom
Sales Forecast

Operations
Objectives
The objectives for the first three years of operation include:
To create a service-based company whose primary goal is provides unique and innovative
advertising technology.
To increase our number of clients served by 20% per year through superior performance and
services
To develop start-up advertising firm that can survive off its own cash flow.
Start-up Costs
Kinetic Advertising will incur the following start-up expenses:
1. Separators for the different departments,
34% HC70
25% HC40

41% HC15
Expected monthly revenue
1,195,000
HC 70 HC 40
2. 6 tables and 12chairs, with 1 couch
3. 1 lockable cabinet.
4. DSL router and DSL connections
5. 5 laptops, including 1 printer
6. Two telephones

START UP EXPENSE
Start-up Requirements
Start-up Expenses Number of
items
Price (Rs) Total Price (Rs)
Equipment:
HC 15
HC 40
HC 70
System Equipment
Laptops
Router
Communication
Telephone
Internet
connection
Internet fee per
month
Office
Chairs
Tables
Sofa
Separators

3
2
1

5
1

2
1


12
6-1
1
2

236,250
607,500
2,362,500

40,000
1500

1000
2000
2000

1500
2000 (8000* long
table)
9000
3000

708,750
1,215,000
2,362,500

200,000
1500

2000
2000
2000

18,000
20,000
9000
6000
4,546,750
Premises:
Rent
Advance
Utilities


2 month rent as
advance

76000

50,000

76,000
152,000
50,000
Total Start-up Expenses
4,824750
HR:
Kinetic advertisements is a small company with a small workforce. The 5 business partners
will make up the majority of the workforce. Furthermore we will be hiring a few more personnel.
We be needing a helper/assistant, a technician and two sales assistants.
Job analysis:
The hiring preferably will be done from within Lahore since, the personnel need not be highly
specialized and the job requirement is fairly basic. Ads will be given in jung newspaper due to
its large reader base and rozee.pk.
Job description:
Director finance: He/she will be in charge of:
Monitoring business performance
Managing and monitoring cash flow
Preparing and overseeing budgets
Managing and preparing accounts
Competitor analysis
Skills and qualification:
Must be a university graduate with a degree in finance and a passion for accounting and
numbers. Good oral and written communication skills, self-motivation, excellent analytical and
numeric abilities
Director Marketing: He/ She will be in charge of:
Analyzing and evaluating marketing environment
Monitoring opportunities and threats and performing actions to ensure sales and
brand development
Analyzing all marketing activities of the business (sales-product mix, customer
profile, demographics etc)
Developing, managing and implementing marketing plans and advertising
campaigns.
Public relations and ensuring that the companys image is maintained at high
standards.
Skills and qualifications:
Must be a university graduate with a degree in the field of marketing. Exceptional public
dealing skills. Must have a creative approach. Must have the confidence to sell ideas.
Director Operations: He/ She will be in charge of:
Day to day operations of the business
Ensuring that the operational targets are met
Controlling costs and debt management
Maintaining customer satisfaction
Skills and Qualifications:
Must have a university degree, excellent leadership skills, effective communication skills, high
ability to synthesize. Very high problem solving abilities.
Director Logistics and distributions: He/ She will be responsible
Looking over the import and purchases of equipment
Organizing the storage and distribution of equipment
Ensuring the delivery of right products to the right location in right time
Coordinating effectively with the suppliers and the consumers
Skills and Qualifications:
Must have a university degree, good understanding of supply chain management, good
collaboration skills, innovative ideas to optimize logistics.
Installation and service technician: He will be responsible for:
Setting up the hologram equipment in working condition
Repairing any damages caused to the equipment
Ensuring the safe and continuous electric supply to the equipment
Keeping the equipment working by following the operating instructions and
trouble shooting.
Skills and qualification:
Electronics troubleshooting, equipment maintenance experience of at least 5 years.
Office assistant: He will be responsible for:
Maintaining office supplies, receiving and forwarding information, making office
schedules, holding reception desk.
Skills and Qualification:
Must be a college graduate with fairly good communication and typing, printing and
photocopying.

Personnel Plan
Year 1 Year2 Year 3
Activity
Staff Finance Manager Delivery person
(driver)
2-IT Graphics Designer
Operations
Manager
Assistant Accounts
and Imports

Logistics and
Distribution
Manager
Operations
Supervisor

Marketing and
sales Managers
Assistants for every
department

Office Assistant
Insurance Agent
Pay roll
Number of
employees
Pay
Staff 1 2 3
Finance
Manager
1 Equal share in
profit for the first
year.

However,
65%will be
reinvested
Equal share
in profit for
the second
year

However,
55% will be
reinvested
Equal
share in
profit for
the
second
year

However,
50% will
be
reinvested
Operations
Manager
1
Logistics and
Distribution
Manager
1
Marketing and
sales Managers
2
Office
Assistant
1 10,000 12,000 15,000
Outsource
Graphic
Designing
25,000/hologram
10,000/image

Kinetics Advertising
What is your company name?

Which sector does your company belong to

Does your company rely heavily on marketing and advertising?
a. yes
b. no
What is your companys approximate marketing budget for a year
less than 1 crore
1-5 crore
5-10crore
10-15crore
15 crore above
What medium do you use for advertising at the moment?
a. Billboards
b. TVCs
c. Print Media i.e newspaper
b. Radio
other: _____________

Which company do you use to advertise?







Would you be interested in using Hologram technology for marketing?
a. yes
b. no
What sort of technology would you be more interested in?
See the links to choose option: http://www.holocube.eu/files/hc32_01.jpg OR
b.http://animationews.com/wp-content/uploads/2013/01/musion-toyota-launch.jpg
a. Holocube (hologram inside a cube)
b.Telepresence (device that can project holograms)
Would you be willing to extend your marketing budget to use this new technology
a. yes
b. no
Would you be interested in renting this technology?
Yes
No
How often would you need to use this technology?
Monthly
Quarterly
Every six months
Yearly
On need basis (randomly)
On a scale of 1-5, how important is it for the content to be created for you?
1 being very important and 5 being not important

1 2 3 4 5

Select a value from a range of 1 to 5.


How much would you be willing to pay for such a technology for a day?
(given the size is 40inches or 3.25 feet)

7000-10000
10000-13000
13000-15000
15000-18000
above 18000


What size of the hologram would you prefer in the holocube
Size in inches
14
15
17
17 above
Would you be interested in receiving more information on these products as they evolve? If
so please provide your email address.