Kinetic Advertisement Inc.SME

Ali Ijlal

Kiran Maheen

M.Usamah Bakhshi

Muhammad Luqman

Waleed Baig

14Lahore school of economics

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.

CustomersKinetic 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 fmcg’s 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

FMCGTelecommunicationfood and bevragesRetailConstruction

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.

CompetitionThe 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 TVC’s is the highest used medium followed by billboards.

30%

10%

20%

40%

Medium used

billboardsRadioprint mediaTVC's

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%

25%

25%

13%

13%

25%

Competitors

Symmetry DigitalPak Media adver-tisementMindshareSynergy AdvertisementsRed Tape

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.

13%

13%

63%

13%

prices

7 to 1010 to 1313 to 1515 to 1818 above

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 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:

1st floor – 2.15 lakhs/month 2nd floor – 1 lakh/month 3rd floor – 76 thousand/month

4th floor – 60 thousand/monthDifferent 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 RoomOffice 1 Office 2

Office 3

Elevator

Washroom

Conference Room

Sales Forecast

34% HC70

25% HC40

41% HC15

Expected monthly revenue1,195,000

HC 70 HC 40

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, 2. 6 tables and 12chairs, with 1 couch

3. 1 lockable cabinet.4. DSL router and DSL connections5. 5 laptops, including 1 printer6. 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 70System Equipment Laptops RouterCommunication Telephone Internet connection Internet fee per monthOffice Chairs Tables Sofa Separators

321

51

21

126-112

236,250607,5002,362,500

40,0001500

100020002000

15002000 (8000* long table)90003000

708,7501,215,0002,362,500

200,0001500

200020002000

18,00020,00090006000

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 company’s 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 rollNumber of employees

Pay

Staff 1 2 3Finance 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

OutsourceGraphic Designing

25,000/hologram10,000/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 company’s 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 holocubeSize 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.