ACKNOWLEDGMENT

Foremost, I would like to express my sincere gratitude to Maam Sarah for the continuous
support of my report and research, for her patience, motivation, enthusiasm, and immense
knowledge. Her guidance helped us in all the time of research and writing of this report. I
could not have imagined having a better advisor.
I thank my fellow classmates Group: Rabia Asif, Syed Osama and Zaib un Nisa for the
stimulating discussions, for the sleepless nights we were working together before deadlines,
thank you for the first glance of research.

BUSINESS MISSION
To provide top rates, service and solutions for the benefit of the customers through
high quality user friendly product.

EXECUTIVE SUMMARY
Payment systems have developed rapidly in Pakistan over the past few decades. The use of
electronic means of payment has increased at the expense of paper-based payment
instruments. For instance, in Pakistan payment cards have replaced cheques, and Internet
banking has become a popular means of paying invoices. The developments in payment
systems and especially in cash usage are very important for banks. Central banks ought to
promote stable, reliable and efficient payment systems. Automated Teller Machines (ATMs)
are nowadays a very common technology for dispensing notes to cash holders. Putting notes
into circulation via ATMs involves two main parties: the central bank and banks, which
typically maintain ATMs and ATM networks. The interests of these two parties may be
somewhat conflicting: from the central banks point of view, increased cash usage is good, as
it generates seignior age; whereas for banks less cash usage is preferable since cash usage
entails costs to banks but hardly any income. Therefore, it may be in banks interests to
reduce cash usage and the number of ATMs. In addition to central banks and banks, cash
usage has relevance for consumers, as well as consumers decide, based on financial and
inconvenience costs, whether to pay for transactions with cash or some other payment
instrument.
ATMs continue to be one of the main touch-points for the customers of financial institutions.
Growth rates of the number of ATMs, transacted volumes and values are different among the
regions of the world, but mostly exceeding the GDP growth rates, underling the importance
and potential of the ATM channel, changes in consumer behavior, market saturation and
rising operational costs have led to declining ATM profitability in recent years. Financial
institutions must now reconsider their ATM strategies as they face a profound transformation
in the ATM banking landscape.
The basic transactions at an ATM include financial transactions (cash withdrawal) and nonfinancial transactions (balance inquiry, mini-statement, pin change, etc.). Our ATM hybrids
will additionally accept deposits, facilitate mobile and pre-paid card top-ups and other value
added services such as installing cheques and pay orders along with the basic ATM features.
Consumer mostly demand or prefer availability of cash at any time of the day. Normally basic
ATM features provide this service through payment cards but now due to the ATM hybrid
consumer can make transactions through cheques, can deposit and withdrawal of money
through pay orders at anytime of the day. Secondly, consumer demand safe mode of money as
well as the availability of ATM in different areas so, ATM hybrid increases the level of
security and makes ATM the safe mode of money through different security features such as
face detection, Finger prints scanner, voice analyzer additionally the Pin of payment card,

cheques or pay order and ATM would not entertain consumer if there is more than one person
in a box.
PBA survey polled 200 consumers in Pakistan between the ages of 18 and 64 who visit the
ATM more than three times each month. The survey responses were split between male
(65%) and female (20%) and 15% primarily interface with a regional or community bank.
The remainder of the sample directly bank with credit unions or virtual banks.
Today there are more than 6 thousand ATMs in Pakistan according to State Bank of Pakistan
and the interoperable feature of these ATMs allow debit card holders to access their bank
accounts through any of the ATMs in the country. And ATM consumers are the main
customers of the bank. So our target market is banks. Availability of ATM hybrid attracts the
customer due to the easy usage of cash at anytime they want. ATM hybrid is easily affordable
to banks due to the same price as of other ATM machines.
In order to create awareness in customers mind; we will reinforce the brand n.ame, point of
product differentiation through media channels like websites and billboard. Personal
selling will be mainly focused. We will also enrich the customers with free sampling and
testing.
So in our plan we focused on the following aspects:
1. We will be providing information on successful marketing strategies which are used to
launch the product in the market.
2. We will be providing details about key competitor, segmentation strategies, and
distribution strategies/channels.

 NEED:
Banks want a mode of payment of cash for its customer to withdraw money and gives huge
profit to them. Consumers want availability of cash at any time of the day. Most of the
consumers dont have payment cards and want cash at anytime they want and those having
payment cards have security issues with it. So the use of payment cards has been reduced and
banks want its customers to use cash. So they need a kind of ATM that can entertain its
consumer with satisfaction.
Key Findings:

Consumers prefer to interact with an ATM rather than a teller.

More people prefer to make deposits at their ATMs than with a teller at their bank.
Cash and check deposit functionalities are key to the ATM.
In regards to security, consumers are not familiar with skimming but place a high
importance on the security measures their banks are taking at the ATM.

SOLUTION:

So after analyzing the problem of consumers, we have introduced the ATM hybrid in order to
fulfill the needs of the customer of banks. Now customer can have cash at anytime of the day.
They dont need a teller or bank to make transactions. ATM hybrid makes the usage of the
cash very easy for the customers of the bank with very high security of their money.
Consumers not having payment cards can also withdraw money through cheques or pay
orders via ATM hybrid. Its a fast, easy and 24 hours working machine.

CURRENT MARKET SITUATION

The State Bank has issued recently a circular asking the banks to ensure that each of their
branches have an ATM facility. The central bank had counted the total number of bank
branches in the country at 10,535 in May last year. While the cash withdrawal machines
numbered 6,449. ATMs used in Pakistan were being imported from the United States and
other European countries that cost up to $7000. The State Bank, in its Annual Payment
System Review for FY14, recorded ATM transactions in the country at 258 million valuing
Rs 2.6 trillion. This, the central bank said, showed a growth rate of around 30 per cent in
volume and value but in the recent past decades the demand of ATMs have declined over the
years in international market as well as in Pakistan due to security issues and non satisfactory
user experience, After analyzing the difficulties of the bank regarding their customer non
satisfactory attitude with the availability and usage of cash as well as with the mode of
payments. There is need of an Incremental innovative ATM that can facilitate the banks
customer. In the current market, safe mode of payment is the most important function of ATM
hybrid as well as the user friendly machines because ultimate customer prefer to interact with
a machine as compare to a bank teller with complete security measures and with new features
that enhance user experience and financial transactions through payment as well as with
cheques and pay orders all over the country.
As the ever flourishing conventional and Islamic banking industry grows in Pakistan at a
rapid pace, the demand for ATMs has increased manifold. So the increase of awareness in the
current market with new features makes high demand of the ATM hybrid for the banks. Our
product is multifunctional product which is unique and new to the market.

Payment Through Cheques:

Payment through cheques via ATM hybrid is one of the great additional attribute for the
ultimate customers as customer having a cheque can make transactions, add money to their
account and can withdraw money as well at anytime they want through IBAN( International
Bank Account Number). Customers can make transactions by writing bank account no. and
account title of the person whom the transaction is being made on the back of the cheque or
can make transaction just by writing the IBAN of the person and a scan copy of back of the
cheque came out of the machine as a proof of financial transaction. This makes ATM hybrid
user friendly and satisfactory as they can make financial transactions at anytime. This whole
attribute makes it a lot easy for the banks to attract and satisfy its customers.

Payment Through Pay orders:

Withdrawal of cash through pay orders or payment of cash through pay orders is also one of
the ultimate customers needed attribute. In the busy world of today usually people dont get
enough time to withdraw cash due to the clash of bank timings and their work timings. But
now they can withdraw money from pay orders via ATM hybrid.

 High Security Measures:

Ultimate customers have very high issues regarding security measures as they want their
money safe. In the recent years people money had been snatched in ATM booth. To make
high security measures ATM hybrid booth consist of bullet proof door glass and ATM hybrid
would entertain only one person at a time. ATM hybrid would not entertain if two persons
entered in booth so in that case snatcher is unable to snatch money. Now banks dont need to
worry about its customer money. All they have is ATM hybrid that makes it easy for the bank.

MARKET DESCRIPTION
Market Segmentation:
We have divided Pakistan in different segments according to areas, states,
regions and markets. ATM hybrid segmentation will be on the following
basis:
Geographic:
Area: Pakistan
We make sure that every branch in the country contains ATM hybrid and
our product is available at different branches of banks, malls, Super
markets, cinemas and different areas were consumers of ATM hybrid have
availability of cash.
Demographic:
Age:18 +
We mainly focused on the consumers having the age of 18 and
above.
Gender: Men and women both have been focused.
Income:
Occupation: Students, working men and women anyone can
withdraw money. Our product can be used by any account holder of
bank or person having pay order or cheques.
Life Cycle: Old, single and married. Old, single and married are
targeted as they have more influence to have cash in their hands.
Religion: Person of any religion can use this.
Race: no racism
Behavioral:
Occasions: Usually going for shopping, cinemas or need of cash in

emergency and whenever customer wants to make transactions.

User Status: 2 to 3 times a month.
Attitude: Necessary part of everyday life.
Benefits: consumers now dont have to wait for the banks to
operate their account. Now they can operate their account virtually
by ATM hybrid. Can also withdraw money through cheques and pay
orders as well.

Psychographic:
Social class: we mainly focused on business class.

Target Market
Target market of our product is all the financial institutions that deal in consumer services
because ATM hybrid is very important financial tool for them to make huge profits and to
satisfy their customers needs and wants..

Commercial Banks: Consumer banks are the most focused customer as ATM
hybrid is the most important tool for them. As consumer banks make profits by investing
their customers money. ATM hybrid allows bank customers to make use of cash more and
more and give them profits by reinvesting their money into banks.
Exchange Banks: The exchange banks are those specialized banks which carry
on foreign exchange business. Foreign trade transactions are settled through these
banks. Exchange banks purchase, sell and collect foreign bills, issue letter of credit,
facilitate foreign remittances through bank draft, telegraphic transfer, as well as they
facilitate foreign accounts as well. Standard Chartered is a working example of exchange
bank. ATM hybrid can be used by the foreign customers that facilitate them more than
any other ATM do.
Private sector bank: The banks which are owned and operated by
the private sector are called private sector banks. Private sectors banks are also mainly
focused as they have many branches in Pakistan like Bank Al-Habib as they have 1600
branches working in Pakistan.

PRODUCT REVIEW

Parent Company: AROZ Pvt. Ltd

Category: Alternative Channel.

Tagline/Slogan: It's Everywhere You Want It To Be

USP: A unique feature of

installing cheques and pay
orders along with basic
features of ATM as ultimate
consumer want money at
anytime they want not with
just payment cards but now
with Cheques and pay orders
as well. Another unique
feature that they can make
transactions of their money by
our product.

Sample: Sample Machines

would also be distributed.

Our product, ATM hybrid offers the following standard features:

Basic ATM features along with the installing cheques and pay orders.
Customer can operate their account by ATM hybrid.
Facilitate mobile.
Prepaid cards top-ups.
Acceptance of deposits.
Voice recognition.
Face detection.
Financial transactions through ATM hybrid.
Large display
User friendly operating system.

In first year we are expecting loss in form of expenses as we are giving sample units of our
product. So are loss projected to be 1,305,000, based on sales of 15 units. In second year
ATM hybrid sales around 500 products at a price of 800,000 rs each this gives us revenue
71,445,000. we plan to increase our sales by 2000 in coming years as ATM hybrid can
replace all the ATM machines in the market because it is easily affordable by all the financial
institutions and ATM hybrid has unique features that differ it from other ATMs.

LEVELS OF PRODUCT
Core :
Used for withdrawal of cash through payment cards.
Actual:
It gives payment through cheques and pay orders and transaction of cash.
Brand name:
The name of the product ATM hybrid

AUGMENTED:

We replace our product in case of any harm or damage of the ATM hybrid.

Feedback will be received by marketers.

Competitive Review
Though ATM hybrid is a new product in the market but there are some similar products also.
Basically the other ATM manufacturers like NCR are the major competitors. The competitors
are divided in two -

Direct Competitors:
Direct competitors are NCR that provides ATM with basic features.

Indirect

Competitors:

There are no indirect competitors of our product.

Competitors Strength:

Established brands- the competitors have already established because of their product
available in the market for quite a long time.
Product supply- Competitor is the international ATM supplier and the competitors
product supply is very larger than our product.
Price- the price of the product is less than the price of our product.

Competitors Weakness:

No product innovation.
Basic level of features for a quite a long time.
Security issues are not yet resolved.
Same price of product similar to competitors product.

Points of Difference:
The point of difference that makes ATM hybrid unique than the others are New idea- of financial transactions that customer can operate account as well as
withdraw cash payment slips like cash and pay orders.
Different experience & knowledge- The customers will have the distinctive feelings &
experiences that they will not get although in other ATMs.
Strong distribution channel- As this product has strong channel of distribution, the
ultimate consumer get it at every nearest bank or mall where the money is needed most.

Competitive Advantage:
Our competitive advantage is really a superior one;

High security measures.

Can operate account.

Can make financial transactions through Cheques and pay orders.

Can withdraw money through cheques and pay orders.

The service is available for 24/7.

Distribution Channel
ATM hybrid is distributed to the top most 10 financial institutions. Our Product will be
distributed through suppliers in the local market as it would be available through Bank
Branches, shopping malls, cinema etc. And we will have our own where house, where our
product would be available. It could also be purchased online through the web stores of these
suppliers and can be purchased through AROZ website.
Initially we will distribute our product in Karachi as a sample product and then after
analyzing its demand we will expand its distribution to other cities as well. Although
distribution will initially be restricted to Pakistan, We plan to expand our business into
different countries according to demand.

SWOT Analysis of ATM hybrid machine

Strengths:

Advanced technology.
Strong Management (ATM hybrid): Strong management can help ATM machine
reach its potential by utilizing strengths.
Technology (ATM Hybrid): Superior technology allows ATM machine to better meet
the needs of their customers in different ways.

Weaknesses:

Weak Management (ATM hybrid): Weak management increases business risks and
reduces profits for ATM machine.
Customer Service (ATM hybrid): Weak customer service hurts ATM machines
reputation and causes customers to flee to competitors.

Opportunities:

ATM hybrid new technology helps ATM machine to better meet their customers

needs with new and improved.

ATM hybrid Emerging markets are fast growing regions of the world that enable ATM

machine to quickly expand.

ATM hybrid in International markets offers ATM machine new opportunities to
expand the business and increase.

 Threats:

Fraud: Cloning/ skimming of ATM cards (ATM hybrid)

International Competition (ATM hybrid machine) International competitors are

numerous and difficult to combat, because they can have many resources.
Physical security - the actual break-in of an ATM.
Logical security - protection from malware.

Objectives:
We have set some achievable objectives for the smooth run of our business for the upcoming
years.
First Year Objective:
We well give our product as a sample for the first year to check the demand of the product
that we will give around 15 sample of our product and if customer likes our product than he
will pay for the sample.
Second Year Objective:
Our second year objective is that according to the demand of the product we will sell around
1000 units of our products and our goal in this year will be to achieve at least 10% of the
market share.
Third Year Objective:
Third year objective is to sell 2000 units of our product and to capture market share around
30% and to expand our business in foreign countries.

Critical Issue:
AROZ Pvt. Ltd is still in the speculative stage as an ATM producer. Its critical issues are to
continue to take a modest fiscal approach; expand at a reasonable rate, not for the sake of
expansion in itself, but because it is economically wise to; and continue to build brand
awareness to lower future marketing costs.

Strategic Marketing Analyses

Strategic marketing analysis includes marketing objectives, marketing strategies, marketing
mix, and market research of ATM hybrid.

Marketing Objectives:
The objectives of all integrated marketing communications will be to:
Inspire consumers to view ATM hybrid in a new more vibrant light.
Empower our target audience about their decisions of usage of money.
Enhance the user experience by secure financial tool.
Establish a connection between ATM hybrid and active lifestyles of ultimate consumer.

Strategies:
AROZ marketing strategy is based on positioning of product differentiation. Our primary
target is financial institution that deals in consumer services.
The single objective is to position AROZ Pvt. Ltd as the unique producer of ATM hybrid in
Pakistan, commanding a majority of the market share within five years. The marketing
strategy will seek to first create customer awareness regarding services offered, develop the
customer base, and work toward building customer loyalty. We seek to communicate the
message that we are the unique producer of high-quality producer as of ATMs. This message
will be communicated through a variety of methods. The first method will be direct
marketing. Other marketing methods will be solely focused. The second method of
communicating is advertisement. The ads will be placed in both the business newspaper as
well as on the websites.
The message will also be communicated to the different financial institutions through
networking with owners and managers. We will also communicate our message through
informal gatherings and networking with consumers and Banks owners.

Positioning:

ATM hybrid helps to maintain good relationship with the

consumer, when time is short, which create a value in
consumers mind about this product and feel secure and reliable
for the usage of cash.

Secure.
High-quality producer.
Professional.
Reliable
Advance Features

 Marketing mix:
ATM hybrid marketing mix is comprised of the following approaches to
product, price, distribution, advertising and promotion, and customer
service.

Product strategies:
Basically at the beginning we are producing only 15 units of ATM hybrid. Afterwards we will
produce more units according to the demand of the product. We will customize our product
according to the demand of our customer. Since our product fulfills the requirement of cash
withdrawal with extra features of transactions and operate of account by account holder our
product will compete with our competitor product.

Pricing Strategies:
Pricing strategies are most important stage in marketing mix. As we are going to launch a
new product in the market, we do not have any idea whether the price would be accepted or
not by the customers. If we select extensively high price, customers will not buy and volume
of sales will be very low. On the other hand setting lower price will not cover our costs. So
we have to consider the following things in selecting price.

Acceptance of product:
As our product faces competition against multinational companys product, price of our
product should be accepted by customers. Our product fulfills both needs of ultimate
consumer of transaction and cash withdrawal. For this extra utility we will charge higher
price than our competitors.

Maintaining market share:

If our product is accepted by customers in near future, more competitors will enter in the
market. So our price should be such that can protect our market share in the competition
period. Moreover we will need to lower the price to hold the market share at the time of
competition.

Earning profit:
As a business our main objectives is to earn profit. So we should not set any price that will
not cover the cost of the product. After covering the cost we set a profit margin for our
pricing.
After analyzing all of this we select Market-oriented pricing that is setting a price based
upon analysis and research compiled from the targeted market and also with the cost.

 Distribution Strategies:
In generally there are different types of marketing distribution system. Consumers are able to
buy the products from different market place. All these distribution strategies are consists of
producer, wholesaler, suppliers, and finally to the consumer.
There are mainly four types of marketing distribution channel:

Conventional Marketing channel

Vertical marketing channel
Horizontal Marketing channel
Hybrid Marketing channel

We select the conventional marketing channel to distribute our product. Our juice will be
distributed by the specified distributor which will be selected by the company. The selected
distributor will supply ATM hybrid to the Customer and finally it will consume by the
ultimate consumer.
There are three types of distribution strategies:
Selective distribution
Intensive distribution
Exclusive distribution
We choose the intensive distribution for our product. We will supply our product all over the
country on the basis of our product demand so that the consumer can get the product easily.

Advertising and promotion:

A mixture of advertisements and networking will be used to increase visibility for ATM
hybrid.
In first we will be focused on introducing the product. The advertisement will be done on
different media e.g. television, newspaper and billboard to make consumers aware of the
product.

Promotional activity:
We make promotional activities for our product in different financial institutions.
Advertising themes will be changed with time and promotional activity will be carried
out to generate the consumer.
In different occasion we will open special sales center where attractive point of
purchase display would be arranged to create positive image in consumers mind.
We will provide different incentive to our distributor.
Sometimes we will offer at low price for our product for the mass sale of product.

 Customer service:
Whatever needs to be done to make the customer happy must occur, even at the expense of
short-term profits. Since our product is manufactured according to the needs and wants of
ultimate consumer. In the long term, this investment will pay off with a fiercely loyal
customer.

Marketing Research:
During the initial phase of the marketing plan development of ATM hybrid, several focus
groups were held to gain insight into prospective customers. These focus groups provided
helpful insight into the decision making processes as our product is customer need product,
market tests, surveys, and focus financial institutions will help us to develop ATM hybrid
more advance.
An additional source of dynamic market research is a feedback mechanism based on a
suggestion card system. The suggestion card has several statements that customers are asked
to rate in terms of a given scale.
There are also several open ended questions that allow the customer to freely offer
constructive criticism or praise.
The ATM hybrid will work hard to implement reasonable suggestions in order to improve
their service offerings, as well as show its commitment to the customer that their suggestions
are valued. Finally, we will use customer satisfaction studies to gauge market reaction.

Marketing Organization:
AROZs CMO, Syed Ali Ahmed holds overall responsibility for marketing strategy and
direction. Figure shows the 8 person marketing organization. AROZs has hired worldwide
marketing for the smooth run of business.

Action Programs
ATM hybrid will be introduced in the market on January 2016 but its testing procedure will
start in July 2015 as the production will be end in the month of June 2015. Following are
summaries of the action plan we will use during the first year to achieve our stated objectives.

July 01st 2015-June 30th 2016

We will initiate by testing our 1st15 ATM hybrid machine in different banks awaring them
through direct marketing campaign which includes mail, e-mail, phones, and face-to-face
contact.

July 01st 2016-June 30th 2017

Our sales increases from July as we targeted to sale 500 machines to different banks as our
testing procedure will end in June. We do promotion through B2B communication.

Budget
With a high level of facility outsourcing employed, the investment in this project is estimated
to be in the range of 30 lacs, which includes both fixed assets and net working capital.
As we start our business in the mid of year of 2015, we do product testing to ensure that
consumers can understand the product. Our market research says that there is a good
potentiality of this unique featured product. We project our sales will be keep rising next year.
Total first year sales revenue for ATM hybrid is projected at Rs12000000 with an average
wholesale price of 8 lac per machine sales volume of 15units. We anticipate a first year sales
on account. Break-even calculations indicate that the ATM hybrid will become profitable
after sales volume exceeds 24units early in the products second year.

Profit & Loss Statement (First year)

Sales( 8lac x 15 )

12000000

Cost of Goods Sold(6.5lac x 15 )

9750000

Gross Margin

2250000

Less: Operating Expenses

Payroll

470000

General & Administrative

750000

Professional fee & Licensure

500000

Travel Costs

100000

Insurance Costs

500000

Rent and Utilities

800000

Miscellaneous Cost

100000

Payroll Taxes

65000

Advertising expense

210000

Repair & maintenance

60000

Total Operating Costs

3555000

Net Loss

1305000

Profit & Loss Statement (Second year)

Sales( 8lac x 500 )

400000000

Cost of Goods Sold(6.5lac x 500 )

325000000

Gross Margin

75000000

Less: Operating Expenses

Payroll

470000

General & Administrative

750000

Professional fee & Licensure

500000

Travel Costs

100000

Insurance Costs

500000

Rent and Utilities

800000

Miscellaneous Cost

100000

Payroll Taxes

65000

Advertising expense

210000

Repair & maintenance

60000

Total Operating Costs

3555000

Net Profit

71445000

Sales Forecast:

total Sale
120000000
100000000
80000000
total Sale
60000000
40000000
20000000
0

2015 2016 2017 2018 2019

Revenue Forecast:

total revenue
100000000
80000000
60000000

total revenue

40000000
20000000
0

2015 2016 2017 2018 2019

-20000000

 Control:
The purpose of ATM hybrid marketing plan is to serve as a guide for the organization. We are
planning tight control measures to closely monitor quality and customer services satisfaction.
This will enable us to react very quickly in correcting any problems that may occur. As we
have planned if our business is not going as planned we can repeat our business by finding
the flaws and by cost cutting or by generating high revenues by high price of the product. The
following areas will be monitored to gauge performance:
Revenue: annually
Expenses: annually
Repeat business.
Customer satisfaction.