Principles of Marketing

Marketing Plan
Of

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ACKNOWLEDGEMENT
First, we pay our thanks to GOD Almighty, who made us
able to complete our task, before the time a lot.

We express our heartfelt thanks to our kind teacher Mr. Asim

Ilyas has always remained supportive to us, throughout our
project. His guidelines have been beneficial to us and who
taught us so well that we were in such a position to work for the
project with our own work.

We pay our compliments to all those persons who have

been cooperative to us in completing our project on time.

We are also grateful to all those persons who has helped us

for successful and
Completing of our project.

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Once again, thanks to all.

Dedication
We want to dedicate
Our this project
Report to our
Beloved Parents
And our Respectable
Teachers & Seniors
We also dedicate this
project repot to each
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Group member for

their team work and efforts.

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Sr.No.

INDEX

Page
No.

Abstract

05

Mission Statement

07

Vision Statement

08

Company Overview

09

SWOT Analysis

11

PEST Analysis

13

Situation Analysis

14

Segmentation

15

Targeting

16

10

Positioning

17

11

Differentiation Strategy

19

12

Marketing Mix

20

13

Product

21

14

Price

22

15

Place

26

16

Promotion

30

17

People

18

18

Financial Projections

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Abstract
Chuck Wagon introducing a mobile restaurant in which customers can either dine in or
take-away meals. We will provide high quality items that require minimal cooking time.
We have done SWOT analysis in order to match the company strengths to attractive
opportunity in the environment, while eliminating or overcoming the weaknesses and
minimizing the threats. By PEST analysis, get the information about environmental
forces include all the actors which are close to the company that affect, positively or
negatively. Situation analysis describe us with todays hectic lifestyles, timesaving
products are increasingly in demand. Perhaps one of the most obvious examples is fast
food. Chuck Wagon segmented the market on the basis of different variables and then
selected its target market in two ways: the age group from 18 to 25 is the primary age
where brand building efforts could take place. Our secondary target is between the ages
of 25 and 40, which are a heavy lounge/restaurant user group. Chuck Wagon positioned
itself as status symbol; by offering a superior product, coupled with superior services,
Chuck Wagon will excel relative to the competition and positioned themselves get more
for same. The analysis of marketing mix on the basis of 5 Ps used by Chuck Wagon
which tells us to handle in different situations and increase customer value by
exceeding customers needs and wants. The financial projections have been done on
the basis of assumptions; the starting capital is 12 million rupees, sales forecasted for 5
years and also analyze the financial performance and position. We calculated the
breakeven point in sales as well as in units.

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Company overview
Chuck wagon will be incorporated in different cities of Pakistan. Our focus will be on
providing high quality food and convenience for our customers. We are introducing a
mobile restaurant in which customers can either dine in or take-away meals.
Chuck Wagon has four owner-managers who each have an equal stake in the business.
Financially, our mission will be to create a business which will be sustainable and
provide steady growth for many years to come.

Vision Statement
Chuck Wagon envisions the best customer services experiences by our customers-one
that cheer up the senses and fulfills even the unexpressed wishes and needs of our
customers.

Mission Statement
We tend to become the market leaders in mobile restaurant business and provide high
quality food and create customers value by exceeding customers expectations.

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SWOT ANALYSIS
WEAKNESSES

STRENGTH
We have
advantage.

the

first

move

We
establish
strong
relationship with vendors that
offer high quality ingredients
and fast delivery schedules.

Lack brand equity.

A limited marketing budget
to
develop
brand
awareness.

We
have
the
locational
benefits as we have focused
on various institutions and
main markets.
We have the advantage of
mobility.
We have an excellent staff
which is highly trained and
very customer attentive.
We have more variety & highquality food offerings that
exceed competitors offerings
in quality, presentation, and
OPPORTUNITIES
price.
In future, we can build a
proper restaurant as well.
We have the opportunity
of introducing innovative
ideas and recipes.
We can capture the
diverse market segments.
We can launch a new
product line.

THREATS
The current unstable political
condition of Pakistan is a threat
to us.
A slump in the economy reducing
customer's disposable income
spent on eating out.
Our competitors may plan to
come into mobile restaurant
business.

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PEST Analysis
1. Political policies
a. Government Policies
Our restaurant is bound to obey the government policies and follow the
rules and regulations prescribed by the government in order to run this
kind of business.
b. Price Policies
A Price policy is also an important factor. Chuck Wagon maintains &
designs its price policies keeping in view the income & income distribution
of the people living in the Country.
c. Political Stability
As we want to become leaders in our business, political stability of
Pakistan plays a key role. The current unstable conditions of Pakistan can
prove a threat but we have the security measures in mind.

2. Economical Factors
a. Income
Income is an important economical factor of the Chuck Wagon. This factor
decides which class we are going to target. Initially, we are focusing on the
upper class, the upper middle & middle class.
b. Consumption Behavior

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Chuck Wagon has also estimated the consumption behavior of people,
their liking and disliking and accordingly made the decisions.
c. Payment Methods
Payment method is an important factor. In this method, we check the
behavior of people regarding the payment methods that is whether they
pay plastic money or cash.

3. Social /Cultural Factors

a. Social Class
We target the upper class, upper middle class and the middle class as our
products have both quality and taste that does not comes cheap.
b. Culture
We have brought up the old Pakistani culture of vendors with just a little
modernized touch.
c. Religion
The food provided is purely halal and all the activities performed are pure
in the boundaries of Islam.

4. Technological Factors
a. Up-to-date Technology
The machinery we have is of the latest technology and work as enterprise
resource planning.
b. Research & Development
Research & Development is also an important factor in the technological
factor. Chuck Wagon always supports the work of research & development
in order to introduce new technology.
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c. Capital Formation
Capital formation means stock of machinery. We have a stock of
machinery to run our business activities.

Situational Analysis
With todays hectic lifestyles, timesaving products are increasingly in demand. Perhaps
one of the most obvious examples is fast food. The growth rate in consumer
expenditures on fast food has led most other segments of the food-away-from home
market for much of the last two decades. Since 1982, there is increase in growth rate in
consumer spending at fast food. The consumers spending on fast food outlets grew
annually, the proportion of away-from-home food expenditures on fast food also
increased.
Now People want quick and convenient meals. They dont have time to spare on
travelling and restaurants where they have to wait long for their meals. Knowing this, the
fast food providers are coming up with new ways to market their products that save time
for consumers. The rapid rate at which the fast food industry continues to add outlets is
as much a reflection of consumer demand for convenience as it is a reflection of
demand for fast food itself.

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Segmentation
After the situational analysis, Chuck Wagon segmented its market through different
variables. The profile for Chuck Wagons customers consists of the following
geographic, demographic, psychographic, and behavioral and benefit factors:

Geographics

Our

immediate

geographic target is the

cities;

i-e,

Lahore,

Gujranwala

and

Islamabad.

We have targeted the

institutions and important
markets.

Demographics

Male & Female.

Age 18 40, this is the segment that has

effective spending power.

Young & Middle aged professionals who

work close to the location.

College and university students

An income over 10,000.

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Eat out several times a week.

Tend to patronize higher quality food.

Are cognizant about their health.

Psychographic

Upper Class.

Upper Middle & Middle class.

Authoritarians, Extroverted and Ambitious.

Innovators & early adaptors.

Behavioral Factors

Enjoy a high quality meal without the mess

of making it themselves.

When ordering, health concerns in regard to

food are taken into account.

There is value attributed to the appearance or presentation of food.

Benefit Segmentation

Quality

Convenience

Service & Speed

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Target Market
Chuck Wagon intends to cater to the bulk
of

youngsters

and

middle

age

professionals in Lahore, Gujranwala and

Islamabad. We have chosen this group for
several important reasons. It is our goal to
be "the extraordinary fast food place" and
we believe that the age group from 18 to
25 is the primary age where brand building
efforts could take place. They are on limited or fixed incomes and seek a value/price
relationship that will not stretch their budgets.
Our secondary target is between the ages of 25 and 40, which are a heavy
lounge/restaurant user group. They are more flexible in budgets and seek more than a
value/price relationship.
It is also a group of people who is always ready to try new products and like to eat
healthy food but don't want to compromise on taste.

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Positioning
Chuck Wagon positions itself in the mind of
consumer as status symbol. Customers expect an
ambient, hygienic and a little sophisticated brand
that respects values. The

tag line is Chuck

Wagon mai hai Kuch Bat which shows the

commitment of quality of food and service is clean,
easy approach to restaurants which ensure that
Chuck Wagon maintains positive relationship with
the customers. Chuck wagon increase the brand recognition to that point customers
attach themselves with chuck wagon to enhance their self-image.
Chuck Wagon positioning will leverage their competitive edge:

Product
By offering high quality and diversity of product we will satisfy the consumer
needs. The product will also be developed to enhance presentation, everything
will be aesthetically pleasing.

Service
Customer service will be the priority. Our primary service is mobility that means
near your doorstep. All employees will ensure that the customers are having the
most pleasant dining experience. All employees will go through an extensive
training program and only experienced people will be hired.
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By offering a superior product, coupled with superior service, Chuck Wagon will excel
relative to the competition.

Differentiation
Strategy/
Competitive Edge

The service of mobile restaurant gives convenience to customers.

Enthusiastic and friendly staff.

Supporting merchandise items that support company's brand building.

ERP System in organization.

Vertical Market System.

Marketing Mix (5
Ps)
After segmenting the market, finding the target segment and positioning itself, each
company needs to come up with an offer. The 5 Ps used by Chuck Wagon are:

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1. Product
2. Price
3. Place
4. Promotion
5. People

Product
Chuck wagon just not offering food it involves a lot more than eating food. We explain
our product according to three levels:

yy
Custo
Custo
mer
mer
Care
Care

Mobile
Mobile
Service
Service

Chunk
Chunk
Wagon
Wagon

High
High
Qualit
Qualit

JUNK
FOO
D

More
More
Variet
Variet
yy

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The core product which is offered is junk food, by which customers can satisfy their
need of hungry or eating. Chunk Wagon offers more variety with high quality food. A
product line includes:
Chuck
Wagon

Fast
Food

Piazzas

Beverages

Deserts

The augmented product is our service of mobile restaurant and also customer care by
taking feedback and enhancing loyalty.

Branding Strategy
Brand name: CHUCK WAGON
We selected the brand name considering our main differentiating feature mobility. We
are focusing on our features rather than the pricing. Our salient features are:

Mobility
Quality
Time saving
Distinctive Taste

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Price
Price is an important factor in the marketing mix, it is only who generates revenue. Our
price covers the value provided to the customers that is the price the customers pays is
worth the food quality and the services. As according to the Philip Kotler, when our
marketing objective is to create brand awareness than the price charge by the company
is cost-plus strategy. Initially, Chuck Wagons pricing strategy is also Cost-plus strategy,
because our objective is awareness about the brand. We also charge the psychological
price by reducing the customers fatigue by providing food at convenient places.

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Source: Philip Kotler, Marketing Management: Analysis, Planning,

Implementation, and Control, 10th ed. (Upper Saddle River, NJ:
Prentice Hall, 2000), p. 316.

Place
Place includes the company activities that make the product available to the target
consumers. It includes locations, inventory, distribution channels etc.
We will use the selective distribution channel. By using it, can develop good working
relationships with selected channel members and expected a better than average
selling effort.

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In distribution channel, Chuck Wagon focuses on Vertical Marketing System instead of
traditional model. In VMS, Chuck Wagon along with their strategic partner acts as
unified and strong power in order to fulfilling the consumers need.

Manufactur
Manufactur
er
er

Chuck
Wagon

Traditiona
l
Model

Wholesaler
Wholesaler
ss

Consum
ers
Chuck Wagons
Model

Our restaurant will cover the following city locations:

Islamabad
o Blue Area
o Jinnah Super Market
Lahore
o Jail Road
o Defense Burki chowk
Gujranwala
o GIFT University
o Satellite Town main market

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Promotion
The various promotion channels being used by Chuck Wagon to effectively
communicate the product information. A clear understanding of the customer value
helps decide whether the cost of promotion is worth spending.
We are doing promotion by objective-task-method. There are three main objectives of
advertising for Chuck Wagons are to make people aware of an item, feel positive
about it and remember it. The right message has to be communicated to the right
audience through the right media.
For targeting our audience, we will do below the line activities, because they refer to
specific audience in specific region.
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Activities

Frequency

Cost/Year

Mobile Marketing
Social Media
Bill Boards
Banners
Flyers

Once in Month
Updated
8/Quarter
400/Quarter
Distributed at different
institutes
Universities &
Organizations
Twice in Year
All time by different

5000
320000
160000
40000

Stands
Event Sponsorship
Displaying LCD at
Sale Point

75000
200000
-

names like musical

night, movie, etc.

Total

800,000

Some of the projected marketing campaigns of Chuck Wagons are:

You deserve a break today, so get up and get away- To Chuck Wagon

Aap ke zamane mein ,baap ke zamane ke daam.

Food, Folks, and Fun.

There is flyer and bill board design given below:

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People
Chuck Wagons understands the value of both its
employees and its customers. It understands the
fact that a happy employee can serve well and
result in a happy customer. Chuck Wagon
continuously does Internal Marketing. This is
important as it must precede external marketing.
This includes hiring, training and motivating able
employees. This way they serve customers well
and the final result is a happy customer.
The level of importance has changed to be in the following order (the more important
people are at the top):
1. Customers
2. Front line employees
3.Middle level managers
4.Front line managers
The punch line Chuck Wagon mai hai Kuch Bat is an attempt to show that the
employees are working with brand that will love to serve the customers.

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Financial
Projections
KEY ASSUMPTIONS
Project Assumptions
Projected Life of The Project in Years 10
Sponsors' Equity 100%
General Inflation Rate 13%

Operating Assumptions
Total No. of Days in One Year 365
Total No. of Months in One Year 12
No of Working Days in One Year 365
No. of Working hours/day 8
No. of Shift 2

Depreciation Rate Assumptions

Vehicles 10%
Machinery 10%
Fittings & Installations 10%
Office Equipments 10%
Furniture & Fixtures 10%

Working Capital Turnover Assumptions

Column1
Raw Material Inventory 30 Days Raw Material
Consumption

Column
2

Column3
Days Raw Material
30 Consumption
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Days Goods available for
30 sale
Days Goods available for
30 sale
Days Stores & Spares
30 Consumption
Days of Total Annual
30 Expenditure

Finished Goods
Packing Material
Ware house
Expenses

Note 2- Cost of Good Sold Statement

Note 2- Cost of Goods Sold
Statement
Opening Balance
Purchases (Note A)
Freight Inward
Cost of Material available for use
Closing Inventory
Cost of Material use
OH Exp (Note B)
Cost of Good Sold Manufactured
Cost of goods sold

Note A-

1st Year

2nd Year

3rd Year

4th Year

3,725,000
150,000
3,875,000
300,000
3,575,000
4,477,050
8,052,050
8,052,050

300,000
4,050,000
165,000
4,515,000
485,000
4,030,000
4,579,050
8,609,050
8,609,050

485,000
4,455,000
181,500
5,121,500
375,000
4,746,500
4,684,110
9,430,610
9,430,610

375,000
4,900,500
199,650
5,475,150
101,250
5,373,900
4,792,322
10,166,222
10,166,222

1st Year

2nd Year

3rd Year

4th Year

1,750,000
1,050,000
925,000

1,900,000
1,100,000
1,050,000

2,090,000
1,210,000
1,155,000

2,299,000
1,331,000
1,270,500

3,725,000

4,050,000

4,455,000

4,900,500

2nd Year

3rd Year

2,060,000

2,121,800

Purchases

Raw Materials
Lahore
Gujranwala
Islamabad

Note B- OH Exp
1st Year

Utilities

2,000,000

4th Year

2,185,454
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4
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Fuel
Repair and Maintenance
Tool Expenses
Misc
Depreciation @ 10%
- Office Equipments
- Fittings & Installations
- Furniture & Fixtures
- Machine
- Vehicles
Total FOH

1,000,000
250,000
50,000
100,000

1,030,000
257,500
51,500
103,000

1,060,900
265,225
53,045
106,090

1,092,727
273,182
54,636
109,273

37,550
155,000
40,000
180,000
664,500
4,477,050

37,550
155,000
40,000
180,000
664,500
4,579,050

37,550
155,000
40,000
180,000
664,500
4,684,110

37,550
155,000
40,000
180,000
664,500
4,792,322

Sale (Note - 1)
Stations
Lahore
Gujranwala
Islamabad

Average Price /Persons

400
350
450

Total sale

Note 3 -

Persons
14500
8800
8000

Total Sale
5,800,000
3,080,000
3,600,000

31300

12,480,000

Operating Expenses

Selling Expense
- Salaries (6 * 4)
- Advertisement (Marketing Budget)
- Packing
Admin Expense
- Utility
- Salaries (1 * 3)+1
- Fuel and Power
Total

1st Year

2nd Year

3rd Year

4th Year

5th Year

2,400,000
800,000
350,000

2,448,000
880,000
360,000

2,619,360
968,000
367,200

2,802,715
1,064,800
374,544

2,998,905
1,171,280
382,035

325,000
360,000
225,000
4,460,000

336,500
367,200
232,500
4,624,200

343,230
374,544
250,100
4,922,434

350,095
382,035
225,000
5,199,189

357,096
389,676
275,000
5,573,992

Income Statement
Not
es

1st Year

2nd Year

3rd Year

4th Year

5th Year

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Sales
Cost of Goods Sold
Gross Profit
Net Operating Expenses
Earning Before Tax
Tax Rate
Net Profit / -Loss After Tax

1
2
3

12,480,000
8,052,050
4,427,950
4,460,000
-32,050
-32,050

13,353,600
8,609,050
4,744,550
4,624,200
120,350
21,061
99,289

14,688,960
9,430,610
5,258,350
4,922,434
335,916
58,785
277,131

16,157,856
10,166,222
5,991,634
5,199,189
792,446
138,678
653,768

18,258,377
10,164,695
8,093,682
5,573,992
2,519,690
629,923
1,889,768

Balance Sheet
1st Year

2nd Year

3rd Year

4th Year

5th Year

Tangible Fixed Assets

Office Equipments (Note E)
375,500

337,950

300,400

262,850

225,300

1,550,000

1,395,000

1,240,000

1,085,000

930,000

400,000

360,000

320,000

280,000

240,000

1,800,000

1,620,000

1,440,000

1,260,000

1,080,000

6,645,000
10,770,500

5,980,500
9,693,450

5,316,000
8,616,400

4,651,500
7,539,350

3,987,000
6,462,300

300,000
1,045,000
102,450
1,447,450
12,217,950

485,000
1,197,400
868,439
2,550,839
12,244,289

375,000
101,250
1,412,966
1,869,496
1,928,765
3,227,672
3,716,731
5,198,418
12,333,131 12,737,768

450,500
3,596,740
3,473,228
7,520,468
13,982,768

12,000,000

12,000,000

12,000,000 12,000,000

12,000,000

-32,050

99,289

250,000
12,217,950

145,000
12,244,289

Fittings & Installations (Note F)

Furniture & Fixtures (Note G)

Machinery (Note H)

Vehicles (Note I)

Total Fixed Assets

Current Assets:
- Stock
- Cash
- Bank Balance
Total Current Assets
Total Assets
Owners Equity:
Capital Introduced
Accumulated Profits
Current Liabilities:
- Accounts Payable
Total Liabilities

277,131

653,768

1,889,768

56,000
84,000
12,333,131 12,737,768

93,000
13,982,768

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Note E - Office Equipments

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Items

No. of Units

Cost/Item (Rs)

Total
Cost
(Rs)

Computers

25,000

200,000

Printers

6,000

6,000

Telephone Sets

500

1,500

Multimedia

42,000

168,000

Total

375,500

Note F - Fittings & Installations

Items

No. of Units

Cost/Item (Rs)

Total Cost (Rs)

Air Conditioners

30,000

150,000

Generator 15 KVA Local

250,000

1,000,000

Misc

100,000

400,000

Total

1,550,000

Note G - Furniture & Fixtures

Items

Furniture

No. of Units

Cost/Item (Rs)

Total Cost (Rs)

100,000

400,000

Total

400,000

Note H - Machine Description

Items

Pizza Oven

No. of Units

Cost/Item (Rs)

Total Cost (Rs)

110,000

440,000
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HotPlate

45,000

180,000

Frier

55,000

220,000

Misc

240,000

960,000

Total

1,800,000

Note I - Vehicles

Items

No. of Units

Cost/Item (Rs)

Total Cost (Rs)

Trucks

1,500,000

6,000,000

Vans

175,000

525,000

Motorcycles

40,000

120,000

Total Amount

6,645,000

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Cash Flow Statement (Direct Method)

Receipts
Sale

12,480,000 13,353,600 14,688,960 16,157,856

Payments
COGS (less Depreciation)
Selling Expense
- Salaries
- Advertisement
- Packing
Admin Expense
- Utility
- Salaries
- Fuel and Power

Cash at the end of the

year

18,258,377

6,975,000

7,532,000

8,353,560

9,089,172

2,400,000
800,000
350,000

2,448,000
880,000
360,000

2,619,360
968,000
367,200

2,802,715
1,064,800
374,544

2,998,905
1,171,280
382,035

325,000
336,500
343,230
350,095
360,000
367,200
374,544
382,035
225,000
232,500
250,100
225,000
11,435,000 12,156,200 13,275,994 14,288,360

357,096
389,676
275,000
14,661,637

1,045,000

3,596,740

1,197,400

1,412,966

1,869,496

9,087,645

Break Even
Sales

12,480,000

Less: Variable Cost

- Purchases
- Freight Inward

3,725,000
150,000

- Utilities

2,000,000

- Fuel & Power

1,000,000

- Advertisement

800,000
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