Kibs Leather Private Company “What you want we got it”
Marketing Strategies Presented By: Kaleem Yousaf Roll #:M08MBA046
Presented To: Sir Usman Yousaf
Hailey College of Banking and Finance, Punjab University 1
Table of Contents 12345-
Executive Summary. Mission. Vision. Keys to Success. Introduction to Business.
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Company’s Summary. Management Summary. Marketing Summary. Start-up Summary.
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Kibs Leather Goods (Products). Marketing Plan.
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1. 2. 3.
Marketing Analysis. Marketing Mix. Components of Marketing Mix. Product strategy. Price Strategy. Place Strategy.
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S.W.O.T Analysis.
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External Environment. Competitors Environment. Our Competitors.
Internal Environment. Program Formulation & Implementation.
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Executive Summary Kibs Leather Private Company is a partnership form of a company. It is a manufacturer of leather goods with one location in industrial area GT road, Gujranwala. Kibs Leather Company is a start-up manufacturing company of two share holders. One of us has innovated the idea of Kibs private ltd. Along with a total own capital, Kibs hopes to initially make a successful effort to secure startup financing to begin operations without any liquidity crunch to avail the benefits of economies of scale.
Kibs is looking to conduct operations at its location to meet an ever-growing level of demand for leather products. The company’s initial product offering will include the “leather shoes”, “leather garments” and “leather bags”. These products will be manufactured for both categories men and women. These products are expected to be very popular among the people because of their durability and attractive designs. We shall launch our products in our company’s outlets at famous locations in Lahore, Gujranwala, Islamabad, Faisalabad and Multan. Strong contact relationships and referral networks among leather traders and manufacturers are expected to the growth of our business. We are going to start our business with the amount of capital 10 billion Rupees. Both the partners have invested at the ratio of 50 per cent. Our all business transactions will be conducted by standard chartered bank.
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Mission Kibs aims to offer high-quality of the leather products at a price, which is competitive in comparison to other premium-quality products of leather in leather market all over the locations of our company’s outlets. The management of Kibs believes there is a current untapped market opportunity because 1- Demand for leather products is rising due to the rising interest of people. 2- Demand of Leather products is also rising due to today’s need of fashion. 3- Leather manufacturers are not offering valueconcern products to the customers and those who are offering value-concern products, their prices are as high as compare to the value of their products.
Our mission is to offer best quality with the value-satisfy price. Our products shall be the best products as compare to our competitors. Because our slogan is “What you want we got it”.
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Vision Kibs visualizes becoming best manufacturer of leather products by:
1- Manufacturing excellent and high quality of products. 2- Creating a heavy equity base of customers satisfactory. 3- To maintain old relations and create new relations with the customers.
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Keys to success Kibs keys to success will include:
1- A high level of quality in its product line. 2- Maintaining and growing its referral networks to generate new and repeat sales. 3- Significant investments in research and development and manufacturing with the aim to focus on precisely controlled products. 4- Improving efficiencies of operations.
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Introduction to business
Company’s Summary Kibs is a start-up manufacturing company, which will be managed by three executives (directors) representing administration, marketing and sales, and finance. These executives bring to the company a large degree of experience in the leather manufacturing industry. They perceive an opportunity to acquire a significant amount of market share by focusing on the specific needs of the customers using leather products and by providing greater precision controls to their products than other competitors. The company will be organized as a private limited company managed by the two principal executives/ sponsors.
The company will be seeking to raise 650 million Rupees in owner’s capital for start-up purposes. The company will have one manufacturing facility in GT Road, Gujranwala.
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Management Summary Director Administration:
Mr. Kaleem Yusuf got Extensive experience in the manufacturing industry with Administration Capabilities. Director Sales & Marketing:
Mr. Asghar Ali has got masters degree in sales and marketing from the Sydney University, Australia and got strong back ground in marketing within the quality manufacturer of leather industry, Extensive experience in business development and strategic partnership development. Director Finance:
Mr. Shoaib Irshad Alvi is a cost and management accountant by qualification and brings experience with a heavy focus in finance.
Marketing Summary: Kibs main customers are those who are qualityconscious. Those who want best quality shall be our customers. Before us in market there were many manufacturers some of them are not offering products of quality and some of our competitors are offering best quality but compare to us they are charging almost double than our products prices.
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Start-up Summary Our start-up summary will include. Asset :
We will buy our own assets. Nothing will be on lease. The amount of capital that we have specified for our assets is 500 million rupees. In which land value is 350 million and the machinery which we have installed, valued 100 million and the left 50 million, we have constructed the quarters for our employees near the manufacturing plant in Gujranwala, and also provided cars to different departmental managers e.g. finance manager, quality manager, and manager of R&D etc. For 200 million we got raw material to start our business. And for advertisement we have specified 50 million rupees. Capital Introduced :
Total amount of capital is introduced by only the partners, Kaleem and Ali. The amount of capital is 1000 million rupees. From which 750 million has been invested in the business while the left behind 250 million rupees is in company bank. Production Head office:
As we have mentioned in executive summary that our manufacturing plant had been settled at Gt. Road, Gujranwala near the shopping mall Pace. And our production office will be also there. 9
Kibs Leather Goods Kibs will manufacture high quality leather goods almost of all kinds that the customer wants to buy. And our products shall satisfy their needs. Kibs primary focus will be placed on producing the highest quality of goods, a high level of product features, and the most efficient manufacturing process possible. Kibs will manufacture leather garments, leather bags and leather feet wearing. In these three main products we have a core competency of being a well-designers and having latest machinery. These both products will be manufactured for both categories, men and women and our products will be manufactured for the customers 10 to onward age wise. Casual and executive leather goods will be manufactured. In Leather Garments there will be different categories. For Men: 1- Leather pants. 2- Leather waistcoat.
3- Leather over-wearing (Jackets).
4- Leather coats. 5- Leather caps. 10
6- Leather belts.
And for Women: 1-
Leather long coats.
2-
Leather suits (Pant and shirt).
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Leather mini over-wearing (jackets). Leather belly belts for skirts.
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The Bags category includes. For Men:
1-
Leather executive bags.
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Leather casual bags.
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Leather wallets.
For Women:
1-
Leather shoulder bags.
Leather purses. 3- Leather executive hand bags. 2-
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Our feet- wear include three categories. 1- 10 to 18 years old. Named junior feet-wear. 2- 18 to 38 years old. Named senior feet-wear. 3- 38 to onward. Named grand old feet-wear. Junior feet-wear includes:
There are two categories in this feature;
School shoes. 2- Joggers’ shoes. 1-
Senior feet-wear includes:
1-
Men
executive
feet-wear.
Men casual feet-wear. 3- Men sports feet-wear. 4- Women feet-wear. 2-
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5- Women sport feet-wear. Grand old feet-wear includes only one category “right and left” casual feet-wear.
Marketing Plan: A marketer is to build a marketing program or plan to achieve the company’s desired objectives. This plan helps us to know how to enter in the market. It includes 1) Marketing Analysis 2) Marketing Mix
1) Marketing Analysis: This analysis helps us to analyze the target market. As a new entrance I have to face different difficulties but through this analysis I can overcome these difficulties this analysis includes marketing research.
Marketing Research: In this portion I gathered information about different customers, competitors and environmental force etc.
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Marketing Mix: Our business produces goods for selling them at profit. In order to stay in the market and earn profit, it does not use simple tool or equipment for pushing its sales. It combines a number of policies or strategies to realize profit through customers’ satisfaction
Components of Marketing Mix
1 ) Product Strategy Our strategy is actually to provide good quality of leather products, new designs according to current requirement of those fashionable consumers (Men & Women). We have also managed Research and Development department.
2) Price Strategy As it is very important element of marketing mix. Its impact affects the customer directly. Price of all products is according to quality. Kibs is different type of leather manufacturer which have all kind of varieties. Prices are decided very carefully after comparing our competitors .
3) Place Strategy This is an important element and is concerned with all those activities which are needed to move the product 15
from the seller to buyer. We have settled our companies out-lets in different cities according to market segmentation.
SWOT Analysis
External Environment Businesses always work in dynamic environment. Our business unit should set-up a marketing intelligence system to track trends and important developments. And for each trend and development management needs to identify the associated opportunities and threats.
Competitive Environment: In leather industry now-a-days a dynamic situation is running. Prices of leather have been increased in last two months more than 50 per cent. Many of leather traders shift their industry from trading to manufacturing. We have also shifted our industry before this we was also traders not manufacturer. Although, we are new in market as a manufacturer but we have earned much in market as a leather trader and manufacturers are wellknown by our name. So after we will enter in market we 16
will make our target market and will capture our part of customers very soon.
Our Competitors: 1- The Leather point. Gt. Road, Gujranwala. 2- K.E Leather point. Pace, Liberty, Lahore. 3- Fayva shoes. Multan, Gujranwala, Lahore. 4- Servis industries outlets. Faisalabad, Islamabad, Lahore, Gujranwala. 5- Bata industries outlets. Faisalabad, Lahore, Gujranwala, Islamabad, Multan. 6- Hush Puppies outlets. Lahore, Gujranwala.
Opportunities: We will capture the market with advertisement as we have a large amount of money for investment. We are well-designer of leather products and our target market is the customers who are quality and new and best designs conscious.
Threats: New substitutes are emerging in market with low quality and low price so it will be a threat for us.
Internal Environment:
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It is one thing to find attractive opportunities and another to be able to take advantage of them. Each business needs to evaluate its internal strengths and weakness.
Strength: We have qualified employees and our R&D department is also very qualified and well-equipped. As compare to our customer we will use latest technology.
Weakness: Our internal weakness is this that we are starting new business with a huge amount of capital and with big market segmentation. So, our risk will be also large.
Program Formulation and Implementation As we have claimed that we will be quality-conscious as well as we have core competency in designing our products. Therefore, our R&D department will be very strong and equipped with latest technologies and the people who will handle this department will be technological leaders. Our company shall create higher customer satisfaction, which leads to higher growth and profits, which leads to more investment, and so on.
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