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Company Name: “Freezy Co”

Brand Name: “Freezy Cola”

1.Brief Introduction:
Our group of five friends was sitting in a Restaurant on the Murree Hill. Two of
us were drinking cola while other two were enjoying ice-cream. The fifth one combined
both ice-cream & cola and started having the fun. He enjoyed it a lot & asked others to
taste that mixture. We also found it pleasing & shared it with our neighbors who also
were pleased to have it. In no time at all, almost all the people in the dining hall of the
Hotel were enjoying that unique beverage.
From there we started researching for its market. We found people willing to
enjoy that taste. We found that such a Beverage exists in America under a brand name
“FIZZ Cola”. Finally, we decided to launch it in Pakistan with our own new brand.

2.OUR Innovation:
We are going to introduce cola with ice-cream for the first time in Pakistan. Its features
will be:
• There will be a cola bottle having a small ice-cream cup above it. When
you will suck it through the straw, the cola will 1st go to the ice-cream cup
and get mixed with it, later you will have the tastes of cola & the ice-
cream at the same moment. This will give a customer double enjoyment at
the same time in an economical price.
• We are planning to introduce different flavors of ice-cream with cola.
• Storage: We have purchased Special chillers from America having
two cabins, an upper & a lower. Our product will be placed in it in such a
way that ice-cream cup will be in the upper portion while cola bottle will
be in the lower portion. Upper portion temperature will be almost minus
1.5-2 degree Celsius to keep ice-cream in its shape, while that of lower
portion will be about 04-07 degree Celsius to keep it at its best.

MARKETING MANAGEMENT 1
It is clearly creating a differentiation. No doubt, there are very famous
brands giving Colas & Ice-creams but still there is no concept of their combination, as in
the form of “Freezy Cola” that we are introducing.
Product is differentiated as high living standard and self-expressive. Firm’s
image, logo and symbol are also a differentiation feature of the product.
Company is having its own parlors as well as product is placed at renowned
stores

Need-Gap Analysis: Pakistan is country where weather is too hot, so in 8 to 9


months in a year people face a lot of heat, exertion and they got fed up with all things.
But in all these they need something cold to drink something which makes them feel a bit
cold, which makes them feel they are out of this heat for sometime so there is always a
need of a beverage which has a dual quality of giving you the taste of ice-cream as well
as Cola. We saw that there was a space for us in such kind of product. Further more
people in summer always want some drinks & ice-cream to be cool and fresh; we found
out that people want something different; they all got tired of that old taste of Colas.
They want something new such as ice-cream cola.

HOW DOES OUR PRODUCT FULFILL THE NEED:-


Our need is based on our environment especially in our country we saw that
people always love to have cold drinks and ice-cream. So the Gap that we have observed
in our Need-Gap analysis will be fulfilled by our product (ice-cream cola) as it contains
Cola and ice-cream all together in a same pot.
Based on our Need-Gap analysis and the situation of our country, we are sure to

justify that our product will sell in the market because it will be the best product to
overcome the annoyed minds as well as to give people a different taste to enjoy. We have
decided to launch this product after having a research to assess the expectations of the
market. In this process, questionnaire surveys, face-to face interviews and market
situation of the competitors were analyzed.
CURRENT MARKETIING SITUATIONS:-

MARKETING MANAGEMENT 2
Most of the share of the beverage industry is occupied by Coke and Pepsi along
with Shandy cola, Gourmet cola etc. On the other hand, in ice-cream industry, most of
the market share is in the hands of Walls and Omore’. The launch of our product will
have a direct impact on both of these industries.
There is expected an immense response from the market as we are entering both
the markets of ice-cream and beverages at the same time. We are hopeful to get a
significant market share as the market size of our product is too large. Almost everyone
wants to have a new taste of some new cool product.

3. DEEPLIST Analysis (only directly related variables):

• Demographic (Age, Gender, Income, Occupation, )


• Ecological (Cold or Hot, Location)
• Economical (economic growth, interest rate, exchange rate, inflation
rate)
• Political (political stability, tax policy)
• Informational (Career attitudes, emphasis on safety, Age distribution,
Population growth rate)
• Technological (advancement, day to day changes)

4.CORPORATE INTENT:

Mission statement

“We will satisfy our customers by providing them with great Taste, self expressive, high
quality Ice-Cola, with diverse choice of ice-cream Flavors, in a friendly and courteous
manner”

Major Market Trends:


• Diet Consciousness

MARKETING MANAGEMENT 3
• Chilled Flavors with new taste & combinations
• New Packing styles
• Easy Availability

Freezy Cola will hopefully meet all these market trends because it will be
containing very less amount of calories (in long run, sugar free ice-cream & diet cola will
be introduced); it is obviously giving a new& chilled taste in beverage industry; packing
style will be 100% new in Pakistan industry, i.e. a small ice-cream cup above a 500 ml
cola bottle; and as we will be providing it to almost all legal stores of Lahore in the long
run so there will not arise any question regarding its availability.

Key Success Factors:


1. A totally new product
2. A very unique combination of two different tastes
3. Good distribution system
4. Availability in each & every part of the launching area
5. Good promotional activities
6. Strong research & development system
7. Reasonable percentage of youth in Pakistan

Competitive Analysis
There is no direct competitor of our product as we are going to introduce it for the
first time in Pakistan.
Indirect Competitors: From Cola Industry (Pepsi, Coke, Gourmet etc)
From Ice-cream industry (Walls, Omore’, Hico etc)
Others (Ice-tea, Ice-Coffee, CTC & other private
Restaurants providing such a type of beverage on order)

Substitutes: From Beverage Industry (Pak Cola,Nestle,Country,Shezan


etc)

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Others (Different flavored Milk Shakes)

5.MARKETING PLAN TO LAUNCH


Market Segment
The Main target of or Ice-cream Cola is youth that is aged among 15 – 25. Furthermore
the customer markets include:
 Demographic Factors:
In Demographic segmentation market of “Freezy Cola” can be divided in the following
categories.

 Age Below15, 15-25, 25-35, 35-45, 45-55


 Gender Male, female
 Income less then 5000, 5000-15000, 15000-25000,
25000- 35000, 35000-45000, 45000-55000,
55000 or over
 Occupation Students, businessman, household, job holder & others
Masters, Others

 Geographic Factors:
In geographic segmentation, market can be divided into following categories:
 World region Asia
 Country Pakistan
 Cities All major cities of Pakistan (Currently Lahore)
 Psychographic
Changes in life style of consumer affect the company's product. As youth is the
target segment of Ice-Cream cola who are young, actives and fresh so their life style is
more trendy and fashionable, and their behavior changes from time to time. Our slogan
"Taste it today, you may be gone tomorrow" will appeal the Pakistani youth a lot, and the
company sales will hopefully increased considerably.
 Preferences for Specific End Benefits:

MARKETING MANAGEMENT 5
A recent survey shows about 90% of the Pakistan population when asked which
soft drinks do they prefer replied some thing new & too cool. In Pakistan, people prefer
our product for the following specific end benefits.
 Occasion Eid, marriages, parties, others
 User status regular users, potential users
 Media graphics:
o All famous T.V channels (specially Geo, PTV)
o Radio Channels (Fm 103, Fm 91, Fm 106.2)
o Best selling Newspapers (The News, Jang)
o Bill boards & Hoardings

Target Market Analysis:


On the basis of above segmentation, attractiveness of different segments will be
considered. Profitability analysis of different segments and compatibility of different
segments with our product’s features, following segments will be targeted:
 Self-expressive and innovative young working males & females and professionals
are regarded as potential customers of our product.
 High life style males & females of the upper and middle class
Strategy of target marketing: Product specialization will be the strategy adopted by the
firm. Only one brand of our product will be launched in all the markets of the country
and all parlors & selling points will be selling the same brand.

MARKETING MIX EXPLANATION


6.The Product Analysis:

Brand Name:
Brand name can be expressed as a specific product has specific name having
specific quality. The brand name of our product is going to be
“FREEZY COLA”

MARKETING MANAGEMENT 6
Logo:

Trademark:

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FAB Analysis:

Feature Attribute Benefit


Mixture of Cola & Ice- 500 ml of Cola,
A Unique taste
Cream 02 Scoops of Ice-Cream
Cola with Ice-cream
An interesting mixture Overcome heat & thirst

Need of Pakistan Meeting the need, make us cool Make fresh, remove
environment from inner side laziness

Quality Statement:
It is a cola as well as dairy based premium product:
We will assure that we provide quality service and make sure that our inventory
is durable, healthy, fresh and long lasting.

Product Range & Product Mix:


The product range will include variations only in Ice-cream but not in cola. We will
provide cola with different flavors of Ice-cream such as in Strawberry, Chocolate,
Vanilla, Kulfa, Tuti fruiti etc. it will be of a quality high-enough to satisfy all customers.
Initially we will launch it in only one size but we will expand it length-wise later. Its
design will be such that a small cup containing ice-cream will be above the cola bottle.

7.PLACEMENT STRATEGY
 The product has been placed at different channel to reach the
targeted customers
 Freezy Cola has placed a freezer at many general stores and super
stores
 The freezer has an appealing and attracting BLUE color, which will
attract adults and kids alike

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 The inventory of the product will be stored in the freezers of those
general and super stores
 Freezy Cola vans will be used to deliver the ice-cream to their
respective channels
 Mobile kiosk –Freezy ice-cream cola cycles moving on city
streets, through house streets and outside educational institutions

Explanation:
We will place our product in a wide range using different channels in the
different area at advance level through a large number of retailers.

Producer----------Whole seller---------- Retailer-----------Consumer

We will use this channel for distribution of “Freezy Cola”. Since the timely retailing is
the basic requirement to promote sales and have confidence of retailers, one department
will concentrate on following:

 Designing goals and objectives of department.


 Maintaining communication with the retailers.
 Feed back of retailer’s complaints about the price, quality and distribution.

Channels of distribution (Exclusive, Selective, or Intensive)


We will be using INTENSIVE distribution strategy. Since our product is not the need
of any single class or area, so we will provide it all over Lahore. We will give it to all
legal stores of Lahore & will place Freezers at almost all the General Stores.

MARKETING MANAGEMENT 9
8.PROMOTION STRATEGIES
(1) Product Positioning Strategies:
• The product will be positioned as high quality dairy & cola based premium
product
• Product will be reasonably priced & consumer will feel that their money is valued
• Offering few extra flavors will be a competitive advantage
• Working for social welfare

(2) Advertising Strategy:


Above the line advertising: when a player uses all the pubic mediums
to advertise the brand including, Television, Billboards, Radio, Print media and
internet
Where as “Freezy Cola” will advertise through the following mediums:
 Television commercials, show sponsorships
 Radio commercials
 Newspaper Ads
 Outdoor billboards
Below the line advertising: when a player uses all the private mediums
to communicate the message which includes, direct calling, Fax and E-mail.
Where as “The Freezy Cola” will advertise through the following mediums:
• Price Promotion (A discount to the normal selling price of a product)
• Point-of-sale displays (the point-of-sale displays in the retail outlets)
• Placing Freezers & product Cabinets at entrance & counters
• Constantly moving Vehicles promoting our Product in big cities
• Window displays of shops and stores
• Displaying Freezy Cola’s theme on the shop’s name board

Advertising Objectives etc:

MARKETING MANAGEMENT 10
• To inform, to persuade & to remind customers about your product
• Create Repeat Exposure and Continued Sales
• Widespread Name Recognition
• A single advertising campaign can create awareness, enhance brand image & to
increase sales
• Mobile kiosk – The Freezy ice-cream cola cycles as well as vans will be moving
on city streets, through house streets and outside educational institutions

(3) Slogan:
After too much brand storming by the members of this launching program, we chose the
following slogan for our product:
“TASTE IT TODAY, Before you are gone”

(4) USP:
Our product (innovation) is our USP. There is no such product in Pakistan as we
are going to introduce. So at every point, where it will be sold, is its USP. Another USP
will be that, it will be available at High-Class Food Restaurants like Pizza Hut,
McDonalds & KFC etc.

(5) Direct Selling Strategies


Our website will be having enormous information about our offerings and will be
providing knowledge about the trends and fashions. Our sales force at the company
outlets will keep the particulars of our gold and platinum customers and then by calling
and e-mailing; these customers are informed about the new offerings by the outlet.
Moreover, the mobile Bicycle shops that will move through the roads & streets
will also sell directly to the customers & will provide much more convenience to them.

(6) Push & Pull Strategy

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Pull strategy will be used, which is the promotion to the end user. It’s the
incentives which are given to the customers mainly be done by means of heavy
advertising. We will do sales promotion in other ways as well.

(7) Promotional Materials


POS Material:
POS material mean point of sale material this will include: posters and stickers
display in the stores and in different areas as well as Freezers & cabinets of our product
placed at some eye-catching positions in the stores.
Broachers/ Leaflets:
We have had a contract with “C-Signs Advertising Company” & they will charge
us Rs-1/- for every five brochures. So initially we will order them for 10 million
brochures and it will cost us almost Rs.20, 000/-. We will spread it through training plane
above Lahore and also place it at the general stores containing our product. Billboards:
The “C-Signs Advertising Company” will charge us Rs.16/- per sq ft of the
material. We will be ordering 7 bill-boards (of 60*30 sq ft) for Lahore, costing us almost
Rs.25, 000 each. We will place them at Liberty Chowk, Defence Chowk, Cavalry
flyover, Yadgar Chowk, Fortress Stadium, Mall Road & Sher Pao Bridge.

9.PRICE

Market Penetration.
We will use Market penetration as our pricing strategy at the beginning. And will
easily Charge a high price later because we will have a substantial competitive
advantage.

Psychological Pricing:
This approach is used when the marketer wants the consumer to respond on an
emotional, rather than rational basis. For example 'price point perspective' 99 cents not
one dollar.

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As we, are charging a high price & high price is a good indicator of high value so
the pricing of our product will have a psychological impact on the public.
For our pricing to be effective, we will also focus on the price-ending numbers,
we will price customers Rs.59/- per bottle. Also we will introduce a scheme providing 6
bottles for the price of 5.

Computation of pricing method


COST BASED PRICING:
We prefer the cost based pricing method, at start we sell our product Rs 59/- per
bottle because this price is suitable with the product and most importantly very
convenient for our target customers. We have calculated it from the formula:
Price= Cost per bottle+ (%age of desired profit of Cost per bottle)
Price=33 + (79.35%*33)
Price= Rs. 59/-
Later (on after one year), we may look for the demand-based pricing according to
the situation of that time.
Price elasticity and customer sensitivity:-
As our product is very much unique and is going to be introduced for the first
time ever in the market of Pakistan, so we think that with the increase of pricing, the
demand of our product will not be influenced.
BUT keeping in mind that the people of Pakistan are price-conscious, so in the
beginning we will keep our prices constant to keep our customers in hand. Later when
our product will get enough market share as well as customer’s mind share, then its price
elasticity will increase while customer sensitivity will decrease.

MARKETING MANAGEMENT 13
10. PEOPLE

There is no concept of service without the service provider. Every individual has
unique skills and qualities. Our objective here will be to discover those abilities in our
employees because this will in turn benefit the person as well as the organization. It is not
the land or infrastructures that make the organization, but people.
We will first hire the people who have different qualities as our setup is large so
we need to have different people with different skills in their hands.
The task of the Manager’s job will be to handle and have grip on the staffs who is
working under them and they have to make sure everything is going perfectly. At least
six managers will be there regarding different areas like HR Manager, Sales Manager,
Area/ Field Manager, Finance Manager, Marketing Manager & Production Manager.

It has been mentioned earlier that we hire well qualified people as our employees
so that they already know how that:

“CUSTOMER IS THE KING OF THE MARKET!”


After hiring a particular person, furthermore we arrange special workshops to
polish him effectively for our product. This is the main reason behind at least one year
experience for every employee before acceptance by our Human Resource Department.

Followings are the details of some of the managerial as well as non-managerial staff with
particular skills that will be hired in the beginning:

(Finance Dept: 12) (Marketing Dept: 15) (Trainers: 15-20) (HR dept: 12)
(Operation & Monitoring Dept:50-60) etc.

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11. Processes:

Our product will reach to customers in the following manner:

Producer----------Whole seller ---------- Retailer-----------Consumer

We will provide our product to each licensed store in the cities that will make the
product easily accessible by the customers. Moreover, our vehicles will provide
customers more ease to get our product at their door.

12. PHYSICAL EVIDENCE:-

We are launching our product at different places at a same time; our head office is
in DEFENSE Y-Block , from where we will be operating.
Land & Building: 10 Kanals including Sales office, Plant etc.
02 Floor Building
Outlets: Not Applicable
Location & Site Details 382-Main Ferozpur Road, Opp Pel Factory, (3 Acre)
Lahore, Pakistan
Office Location: Y-Block, Defence Shopping Plaza (Gole Plaza), 5 Marla,
(Rs. 3,000,000/-)

MARKETING MANAGEMENT 15
13. Market Entry Strategy

Soft launch
We started our soft launch plan from mid march to mid May. Soft launch plan
basically identified about the success of our Freezy cola. In soft launch plan we
distributed it to our employees and with in the selective areas of Lahore and got their
feedback. We also distributed our product with in the universities, colleges and schools
of Lahore like Punjab university, Lahore university of management and science
(LUMS),COMSATS and university of management and technology(UMT), Colleges like
Forman Christian (FC)college, & Schools like Lahore Grammar School and students of
Beacon house school system and got the feedback from students that either our product
successfully found its identity in market and either its meet the present trends of the
market.

Official launch (Event Marketing at Launch)


After getting the successful feedbacks as a result of soft launch, we will launch
our product officially. The official launch of our product will be held in Avari Hotel,
Lahore at 7:00pm to 11:00pm on 1st of June, 2009.And we have specially invited our
product brand ambassador Waseem Akram and chef guest like Ibrar ul Haq, Imran khan,
Junaid Jamsheed.
As we mention earlier our launch party will start at 7:00pm with recitation of
Holy Quran. Mr. Abdul Rafay, (Freezy Co General Manager), will welcome the
attendees of the ceremony and affirm the company's interest in maintaining its strong
relationship with the local press, highlighting the important role they play in acquainting
the Lahore public with Freezy Co commodities.
He will speak about the unique characteristics of Freezy cola through which
Freezy Co aims to present to the Lahore consumer a model for products which employ
the best technological and production practices, and adhere to the highest international

MARKETING MANAGEMENT 16
standards of purification and quality control in line with Good Manufacturing Practice
(GMP) regulations.
Then inauguration ceremony will take place at 7:45 to 8:15pm by our brand
ambassador. Dinner will start at 9:00pm and after the dinner Freezy cola will be served,
at the end of the ceremony managerial and non managerial staff and the entire participant
pray for the success of the product.
In the process, we will officially launch our official website as well that will be
www.Freezycola.com .

Publicity and public relationship:-


We publicizes our product by using publicity tools like T.V, radio, bill boards,
posters, and we also using the internet for increase the popularity of our product. For
advertising on T.V we approach celebrity junaid jamsheed and waseem akram.
Public relationship activities:
Following tools that can be optimize our product and increase our public
relationship with the target audience,
• Press releases
• online newsrooms
• Media kits
• Blogs
• Yellow pages
• Newsletters
• Real world interviews published digitally
• Industry news and updates & invitations

MARKETING MANAGEMENT 17
14. Other Strategic Approaches:

Our target audience is youth that’s why we will concentrate more on school,
colleges and universities we will launch different campaigns there & give special
discounts to students of all ages. This will help us in promoting our sales and also to
make maximum people aware of our product “Freezy Cola”.

15. SWOT Matrix Analysis

External Threats
• High interest rates
• Accident and terrorist attacks
• Increase in Inflation
• Political pressure for financing to the politician
• Private Restaurants Competition

External Opportunities
• Hot weather of Pakistan
• People are willing to pay more for their psychological satisfaction
• Customer loyalty.
• Expansion in other cities.
• Because of rising education rate, people are becoming more innovators

Internal Strengths
• A unique product in Pakistan
• High Production capacity
• Strong research & develop system
• Superior operating structure

MARKETING MANAGEMENT 18
Internal Weakness
• Cola being asked to be prohibited by the doctors (specially to Childs)
• High dependence on revenue
• Difficulties in operations due to the quite new business.

16. Financial Analysis:

We have a total budget of Rs, 100,000,000 that is $ 1,250,000 at the beginning of our
project. Sources of this amount of money are:
• Total Saving & collection by Our Group: Rs.30, 000,000 ($ 375,000)
• Bank Loan (by pledging our lands): Rs.70, 000,000 ($ 875,000)

Project Start Up Costs (One- Time Expense)


Particulars Cost Rs. Cost $
Land & Building for Head Office Rs.5,000,000 62,500
Land for Plant Rs. 25,000,000 312,500
Building & Plant Rs. 15,000,000 187,500
Project mapping cost Rs. 50,000 625
Labor cost Rs.3,000,000 37,500
Security system Rs.80,000 1,000
Electric Generators Rs.400,000 3,125
Furniture & Interior Design Rs.800,000 10,000
Vehicles (Shahzores, Pick ups ) Rs.10,000,000 125000
Other expenditures Rs.2,000,000 25,000
Grand TOTAL: Rs.61,330,000 $ 766,625

Revenues & Cash flow projected with estimated sales forecast (in

Units and $’s):


Our predicted strength of customers will be almost 10,000 a day in the beginning
and our per unit rate will be Rs.59/-. So we will earn in a single day nearly Rs.590, 000

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that are $7,375. On monthly basis we will earn an amount of app Rs.17, 700,000 i.e.
$221,250. Perhaps we will be able to cover whole of our expenditures within 2 years.

So, Total Revenue we will earn in a month = Rs.17, 700,000 ($221,250)

Linking sales and expenses to strategy (performance income statement):


Our sales will hopefully be very intensive because we are introducing a cool
thrilling taste.
Our expenses are supposed to be of different types of expense in a month, such as:

Every Month Expense


Raw Material Rs.1,000,000=$12,500
Salaries Rs.3,000,000=$37,500
Operating expenses & Advertisement Rs.1,500,000=$18,750
Administration expenses Rs.800,000=$10,000
Repair and maintenance Rs.100,000=$1,250
Electricity and gas expenses Rs.250,000=$3125
Grand Total of Monthly Expenses Rs.6,650,000=$83,125

An Estimated Income Statement for the first month of operations:

Income Statement for Freezy Cola


For the Month ended June, 2009
Rs. $
Sales (after deducting 15% sales tax) 15,045,000 188,062.5
Less Cost of Goods Sold (850042.5) (12,500.625)
=Gross Profit 14,194,957.5 177,436.9688
Less Expenses
(5,650,000) (70625)
(sum of all operating & non-operating expenses)
=Net Income before Tax 8,544,957.5 106,812
Less Income Tax (30 %) 2,563,487.25 32,043.6
= Net income after tax 5,981,472 74,768.4

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Financial Ration- which ever are applicable:
• GROSS PROFIT MARGIN RATIO
This financial ratio tends to remain stable over time for our company. Significant
fluctuations can be a sign of fraud or financial irregularities. So this ratio will also be
vital for us, to be applicable.
Gross profit margin Ratio= Gross Revenue/ Net Sales
Where, Gross Rev= sales-(Raw material total expenses)
Gross Rev= 17,700,000 – 1,000,000
Gross Rev= Rs.16,700,000 = $208,750
So,
Gross profit margin Ratio= (16,700,000/17,700,000)*100=94.35%

• OPERATING PROFIT RATIO


For us the asset turnover financial ratio will calculate the total sales for each dollar of
asset of our company. It will measure our company's efficiency in using its assets.
Operating Profit Ratio = Operating Income/ Net sales
Operating Profit ratio=7,494,957.5/17,700,000*100= 42.344%

Operating income= Net Income Before Taxation – Non-operating Expenses


Operating income= 8,544,957.5 – (800,000+250,000)

Current Ratio
The current ratio is one of the most important ratios. It will serve us as a test of
our company's financial strength and relative efficiency i.e., does Inchworm have
too much cash on hand or not enough?

MARKETING MANAGEMENT 21
Conclusion & Wrap up

Our innovation “Freezy Cola” is a totally new innovation & is going to be introduced
first time in the market of Pakistan. The Freezy Cola is serving in Ice-Cream as well as in
the cola industry of Pakistan. So, we will be facing competition from both Cola & the
Ice-cream industry.
We are hopeful that the budget that we have in our hands will be pretty sufficient
to be used in a full effective manner and will be able to recover all of our costs within 2
years. We will be controlling our expenses in an affective manner and for this purpose
different strategies have been set that are discussed above. We will be giving pretty
much conscious about our customers in the market & will be serving them in the best
possible way. So, we are hopeful and pretty much confident that we will succeed in
operating this business in Lahore & expanding it to other cities later on.

MARKETING MANAGEMENT 22

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