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SUPERVISED BY:Mr.

Waqar Ul Hassan

SUBMITTED BY: Izza Munawar,

Reg no: 15-ARID-3820

DEPARTMENT OF MANAGEMENT SCIENCES


BARANI INSTITUTE OF SCIENCES
BUREWALA CAMPUS

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Table of Contents

Chapter 1.....................................................................................................................................................4
1. Introduction.............................................................................................................................................4
1.1 Background and history.....................................................................................................................4
1.1.2 Nursery Supplies throughout History..........................................................................................8
1.1.3 Origin of Baby Bottles.................................................................................................................9
1.1.4 History of Diapers.....................................................................................................................10
1.1.5 Miscellaneous Baby Inventions.................................................................................................12
1.1.6 Evolution of Baby Gear.............................................................................................................12
1.2 Current market situation.................................................................................................................12
1.3 Objective..........................................................................................................................................13
Chapter 2...................................................................................................................................................16
2.1 Methodology.......................................................................................................................................16
2.1. Planning the focus group study......................................................................................................17
2.2 Conducting the focus group discussions..........................................................................................17
2.2 Data type.........................................................................................................................................18
2.2.1Primary data..............................................................................................................................19
2.2.2 Secondary data.........................................................................................................................19
2.3 Data collection.................................................................................................................................19
2.4 Questionnaire..................................................................................................................................19
2.5 Crosnbach’s alpha............................................................................................................................19
2.6 Frequency Analysis..........................................................................................................................19
Chapter 3...................................................................................................................................................20
3.Research analysis....................................................................................................................................20
3.1 Frequency analysis...........................................................................................................................20
3.2 SWOT analysis..................................................................................................................................45
3.3 PEST analysis....................................................................................................................................46

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3.4 Promotional policies........................................................................................................................50
3.5 Marketing strategies........................................................................................................................51
3.6 Pricing strategies.............................................................................................................................52
3.7 Conclusion.......................................................................................................................................53
Chapter 4:..................................................................................................................................................54
4.Financial Planning...................................................................................................................................54
4.1 General Terms & Conditions............................................................................................................54
4.2 General Assumptions.......................................................................................................................54
4.3 Project investment..........................................................................................................................54
4.4 Cost of Advertising Method.............................................................................................................55
4.5 Costs................................................................................................................................................56
4.5.2 Fixed cost:.................................................................................................................................56
4.6 Break Even Point..............................................................................................................................56
4.7 Pricing..............................................................................................................................................56
4.8 Sales Budget (for the year 2018).....................................................................................................56
4.8.1 Sales plan:.................................................................................................................................57
4.9 Projected profit and loss statement:...............................................................................................57
References.................................................................................................................................................61
Aappendix..................................................................................................................................................64

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Chapter 1

1. Introduction

1.1 Background and history


Toys have been important to children across centuries and in every culture on earth. Children
play as they grow up, and they enjoy different ways of playing. But there is not just pointless fun
happening when your children are happily playing with their favorite toys(Gold, 2007).
Similarly, for their better care and good health food is necessary skin care product are necessary
for sensitive skin clothes are necessary as it is their physical need. Other product like pampers
and napkins are also important as they avoid baby skin from moisture all is that baby products
are essential and there is much need of them.
Baby Superstore, Inc., operates a chain of 60 stores in 16 southeastern and Midwestern states.
The stores sell clothing, supplies, toys, furniture, and other accessories for babies, and are
distinguished by diverse inventory and low prices. The company plans to more than double in
size during the mid-1990s.
Baby Superstore was founded by American entrepreneur and billionaire Jack Tate. In
1995  Forbes listed 51-year-old Tate as one of the 400 wealthiest people in the United States.
Most of that wealth was generated through Tate's Baby Superstore venture, which he launched in
the early 1970s and groomed into the most successful baby supplies business in history. Baby
Superstore capitalized on the trend toward giant discount specialty outlets in the 1980s, expanded
rapidly, and began growing at an even faster pace in the 1990s(Barcellos et al., 2006).
Tate was first exposed to the retail industry as a boy growing up in Greenville, South Carolina.
His father, Jack Sr., operated a furniture store with his Uncle George. The business was
moderately successful, but Tate's father didn't believe that it, or retail in general, promised a
very bright future for his son. Instead, Jack Tate, Sr., wanted his son to become an attorney. Tate
graduated from the University of North Carolina in 1966 and entered Harvard Law
School(Pridham & Chang, 1989). The intense desire to start his own business was ignited one
day in March 1969 when he went shopping for baby supplies and furniture for his nine-month-
old daughter and was struck with an inspiration: Why not put everything that you needed to buy

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for your baby under one roof and create a sort of one-stop-shop for parents? "It hit me with a
force that I still don't understand," Tate recalled in the October 23, 1995, Forbes(Craig et al.,
2015).
After his shopping trip, Tate wrote the name "Carolina Baby" on a legal pad and filed it away.
Although he hesitantly started his own law practice after graduation from Harvard, he couldn't
get his mind off of the idea. His attention quickly strayed from his law firm, and Tate began
looking for capital to start a Carolina Baby shop. He approached some local bankers and was
able to convince them to front about $200,000. Tate had hired a 20-year-old legal secretary
named Lisa Robertson to help with his law practice part-time. Together, they opened the
first Carolina Baby store in Greenville in March 1971, and Robertson remained president of the
company, under Chief Executive Tate, into the mid-1990s. The shop, which provided furniture,
clothing, and toys for babies and children through age 12, was a hit. Tate shuttered his law firm
in April and never looked back(Elo & Kyngäs, 2008).
Tate's ability to round up $200,000 in cash while still in his early 20s reflected his
entrepreneurial traits, which included infectious enthusiasm and hard-driving ambition.
Augmenting those personal qualities was a feeling that Tate had experienced since early
childhood that he was destined to accomplish something significant with his life. "I remember
feeling driven when I was six years old," Tate said in the Forbes article. "I can't describe it. It
was just a feeling that I was supposed to do something." That "something" for the next few
decades would be his baby supplies enterprise(Cockcroft, 2012).
Tate opened his second Baby Superstore two years later in nearby Easley, South Carolina. That
store spawned a gradual expansion of Carolina Baby shops throughout the Carolinas during the
1970s and early 1980s. Besides building more stores, Tate began experimenting with different
concepts and formats to find the perfect recipe for his shops. He tried opening some stores in
malls, for example, but discovered that the real estate was too expensive for him to fully stock a
store and still generate sufficient profits. He eventually found that bigger, less expensive
locations in strip shopping centers worked well. He also gradually narrowed his target market to
younger and younger kids, finally focusing on babies and toddlers(McDonald et al., 2013).
Hard work and persistence paid off for Tate and Robertson, who watched their venture slowly
take off during the 1970s and early 1980s and build steam during the mid-1980s. The company
began expanding outside of the Carolinas into neighboring southeastern states, where the concept

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was well received. By the mid-1980s Carolina Baby, Inc. was operating about 25 stores that
averaged 6,000 square feet in size. The company was generating nearly $15 million in annual
sales and realizing steady profits, and Tate was generally satisfied with the store format that had
evolved--until 1987. In that year, Tate hit on a new concept that was destined to transform his
company when he opened an experimental 20,000-square-foot superstore in Marietta,
Georgia(Davey, Turner, Clarke, & Higgins, 2011).
The giant store offered a wide range of goods and was an immediate hit. Sales-per-square-foot
shot up an amazing 50 percent over the company's smaller stores. Tate suddenly realized that,
after building his business for more than 15 years, he would have to effectively shut down his
other stores and convert them into superstores. In 1987 Tate changed the name of the company to
Baby Superstore, Inc., and began looking for cash to build Baby Superstore outlets. During the
next five years he and fellow executives scrambled to open a total of 26 shops under the Baby
Superstore banner. From $14.5 million in 1987, sales exploded to $26 million in 1989, $38
million in 1990, and then to a whopping $47 million in 1991.
Tate's gains at Carolina Baby and Baby Superstore during the 1970s, 1980s, and early 1990s
were made even more impressive by the fact that he achieved them by utilizing a fiscally
conservative growth strategy. Expansion was funded largely by internal cash flow, and Tate
invested much of the company's profits back into the business. Tate himself was something of a
maverick among successful entrepreneurs. For example, despite his multimillionaire status, he
lived simply in a two-bedroom A-frame house located in a remote mountain town near
Greenville. He kept two pet goats and a pet sheep. The most conspicuous evidence of his success
were a helicopter and a Lear jet, which he purchased and maintained with cash from his own
pocket(Mills et al., 2014).
As the company opened new stores, it continued to tweak its format to maximize sales and
profits. In one important innovation in 1992, Baby Superstore borrowed an idea from hardware
superstore retailer Home Depot. Management began tearing out interior walls and ceilings and
reducing backroom stock space. Long, wide aisles were created that were called in by inventory
piled high toward the ceiling. Stores were stocked with a wide range of furniture and supplies for
babies, toddlers, and juveniles. The goal was to create an impressive store where shoppers knew
that they could go to find nearly any item that they needed, wanted, or didn't even know existed

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for their children or grandchildren. The effort was hugely successful, as evidenced by a steady
increase in per-store sales and profits(Price et al., 2018).
The success of Baby Superstore didn't go unnoticed. Other retailers followed the company into
the baby market. Among the most notable new competitors in the early 1990s were Kid Source
and Lil' Things. Tate met the startups head on by opening Baby Superstore outlets across the
street from some of the competitors' new stores. A more weighty contender was the massive
Toys "R" Us chain, which announced in 1994 that it was going to open five Babies "R" Us stores
in 1995. To contend with such threats to his market share, Tate opened new stores at a steady,
rapid clip. By 1994 the company was operating a chain of about 40 stores, with plans to have
roughly 50 shops in 13 states open by the end of 1995(Kattwinkel et al., 2010).
Even with the new competition, Baby Superstore executives were confident of their future.
Demographic projections favored Baby Superstore's concept and suggested continued market
growth, and Tate worked to boost the company's exposure through new marketing efforts. Baby
Superstore began offering its own brand of clothing, for example, which was manufactured by
some of the same Asian producers that supplied Baby Gap. At the same time, the company was
expanding floor space and inventory to top its competitors. In 1994 it began opening 40,000-
square-foot stores that stocked about 25,000 items from 500 suppliers--compared to about 15,000
items stocked by Toys "R" Us.
Indeed, over several years the company had developed a shrewd mix of products, prices, and
service that generated its reputation as a savvy merchandiser. "Baby Superstore has struck a
chord with consumers with its combination of great brand names and dominant assortments,"
surmised Doug Hyde, chief executive of OshKoshB'Gosh, in the June 19, 1995, Discount Store
News. “They’ve been around for a long time, and they're very sophisticated merchants.... Baby
Superstore is a long-term, significant player." Baby Superstore sold goods categorized into six
major segments focused on babies through three-year-olds: furniture, which comprised its largest
profit center; clothing; baby needs; toys; commodities; and shoes. The product mix within each
segment was chosen to appeal to both broad markets and niches, such as premature babies or
baby Christening accouterments. And, while prices were kept low through volume purchases, the
company prided itself on a high level of customer service(Bolton, 2000).
After more than two decades of funding growth largely from earnings, Tate finally decided to
take Baby Superstore public. The decision was partly the result of a meeting between Tate and

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Kenneth Lang one, a well-known New York investment banker. Lang one was known for,
among other deals, taking Ross Perot's Electronic Data Systems public in 1968 and engineering a
successful initial public offering for Home Depot in 1978. In September 1994 Lang one helped
to take Baby Superstore public with a stock sale that raised $33 million. The company's stock
price more than doubled to $25 on its first day of trading, reflecting investor enthusiasm over the
company. A few months later, by which time the stock had vaulted to $38 per share, Baby
Superstore raised another $29 million through a second offering.
Tate planned to use the cash to intensify expansion efforts. The company had already managed to
boost sales to $63 million in 1992, $104 million in 1993, and then to a whopping $175 million in
1994. At the same time, profits swelled from about $500,000 annually during the early 1990s to
a fat $2.32 million in 1994. By the end of 1994 the company was operating a chain of nearly 40
Superstores. Management planned to boost that number by about 40 during the next two years,
moving into new markets including Chicago and New York. As a result of new stores, as well as
increased revenues at existing units, the organization's sales surged to more than $300 million in
1995. "This is a company with tremendous growth prospects," said retail analyst Marcia Aaron.
"Based on our estimates, we believe that Baby Superstore is capable of 50 percent compound
annual growth over the next three years(Ganchimeg et al., 2014)."

1.1.2 Nursery Supplies throughout History


Are you expecting a new baby? Are you already a parent or grandparent? Have you ever
browsed through your local baby aisle and gazed in wonder at the assortment of gadgets and
trinkets? If so, you were probably deciding what you needed to buy, whether or not you could
afford something, or whether or not it should go on a gift list or registry.

Most parents and parents-to-be don't have the time to inspect each item and think "how awfully
clever! I wonder who invented this!" although at times you probably have thought to yourself
"Thank God someone invented that!" when a particular item turned out to be a life-saver.

When did all of those cool baby items come into existence? Surprisingly, many were invented
not long after the first babies were made. Even more surprisingly, some were not invented, or at
least perfected, until the 20th century(Purdy, Craig, & Zeanah, 2015).

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1.1.3 Origin of Baby Bottles
Next to diapering supplies, baby bottles are probably the most frequently purchased baby item.
Even breastfeeding moms usually have a bottle or two in the house.

We can buy them for less than a dollar, and we take it for granted that they are available in every
corner store and gas station if we need them.

It wasn't always that easy. In fact, the history of baby bottles is both amazing and scary. The
oldest baby bottles, or feeding vessels, looked a lot like Aladdin's lamp, or a modern teapot. The
oldest known feeding vessel dates to about 2000 B.C. These ancient bottles were made of
various types of pottery(Singh, 2015).

Even though glass bottles were introduced in 300 B.C, when Egyptians perfected the art of glass-
blowing, they never achieved popularity, and were only reintroduced in the 1800's! Yet another
example of how inventions that assisted women were placed on the back-burner.

During the middle ages, the use of carved wooden vessels, leather bottles, pewter flasks, and
cow's horns were used. Lucky babies had bottles with real goat or cow udders. Others had to be
satisfied with hard spouts.

In the 1700's, the design of baby feeders reverted back to the old pottery style feeders. These
"pap boats" came in a variety of designs, and would have been quite pretty, if they hadn't been so
unsafe.

Infants were fed a mixture of ''pap'', which consisted of scraps of various breads, milk, sugar, fat,
or raw meat. Also, called sucking pots, the pap boats are thought to have contributed to the high
infant mortality rate, due both to the indigestible formula and the risk of choking.

In the 1770's, a doctor named Hugh Smith did at least recommend that mothers cover the spout
with a piece of stuff cloth. This would have allowed the babies to suck more naturally, and
would have strained out larger particles of food. It didn't remedy the fact that the feeding vessels
were highly unsanitary(Hildingsson & Thomas, 2007).

In the 1800's a hands-free feeding system was invented. It looked like a hookah, with the nipple
attached to a long hose. Even at the time, physicians warned people about using these bottles.

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There was no adequate way to clean or sterilize the bottle or the tubing, and as a result it earned
the nickname "the murderer". Even with that ominous reputation, the bottle remained popular
until the 1920s, even with newer, better bottles available.

In the 1880's, "the banana" bottle was invented. It was the first feeder designed especially for
hygienic purposes, rather than just functionality. It too was shaped rather like a gravy boat, and
the nipple had a tight rubber base that was stretched over the bottle. The design remained
popular, with only a few modifications, for 50 years.

At the same time the banana bottle was gaining popularity; upright glass bottles were also
available. They had the very narrow necks over which the nipples were stretched. This design,
like the feeding vessels, was difficult to clean thoroughly.

Wide-neck bottles, similar to today's bottles, were available in the late 1800's, but were not
popular until well after the turn of the century. By this time device to sterilize bottles were being
introduced, and more people understood the importance of hygiene for maintaining a baby's
health.

Even today, baby bottles are constantly being redesigned. Today's mom has the option of plastic
or glass bottles in a variety of shapes and sizes. Specially designed feeding systems assist with
orthodontics and digestive upsets. For travel, disposable bottles or bottles with disposable liners
can ensure that babies always have a source of sustenance...without harmful bacteria(Hannula,
Kaunonen, & Tarkka, 2008).

1.1.4 History of Diapers


Let’s face it

Babies need to be kept clean and dry. And that is sometimes a challenge. Your average infant is a
pretty leaky vessel, and rumor is that babies have always been slightly moist.

Even cave babies. So naturally, along the path of evolution and industrialization, someone had to
keep looking for better ways to contain all that extra mess.

As far back as the Stone Age, mothers found ways to diaper their babies. Moss, leaves, wool and
other absorbent materials were bound to the body by cloth, fur or leather bands. Egyptian

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artwork depicts infants swaddled in strips of padded linen, which suggests that any culture with
access to fabric used cloth for diapering.

The predecessor to the modern cloth diaper (either flat) has been dated back to the 16th century.
At that time, diapering was a term that related to the actual style and weave of the fabric.

The quilted effect made the material more absorbent, and therefore more desirable for assisting
with baby's elimination needs. Therefore, the term diapering became associated more with
"nappies" than fabric.

By the 1800's, women could purchase diapers made much like today's flat or prefold diapers,
often with an extra absorbent pad. Before the invention of the diaper pin 1849 (patent) diapers
might be held in place either by tying or covering with "bloomers".

In the 1930s rubber pants were available to place over the diaper to help control leaks. In the
1940s a woman named Marion Donovan sewed a plastic diaper cover from her shower curtain.
This design is very similar to the new style of cloth diaper covers.

At the same time, the first disposable diapers were appearing on the market, but were much too
expensive for the everyday person to afford. Plus, they had multiple parts, much like a cloth
diapering system, which didn't make them much quicker to use. For these reason, Donovan's
design remained a popular solution(Tubbs‐Cooley, Pickler, Younger, & Mark, 2015).

More mothers were interested in having careers, and diaper care was an involved process.
Diapers had to be boiled for sterilization, and this must have taken most of the mother's time.
Time at least that wasn't spent changing the diapers.

More companies tried to introduce different disposable diapers, but it wasn't until the
introduction of Pampers brand in 1961 that the industry boomed. By the 80's disposable diapers
were super-absorbent and cloth diapers were almost non-existent. However, in recent years cloth
diapers have been revived.

Today's cloth diapers are designed to mimic the style of disposable diapers, with "all-in-one
diapers" being just as quick and easy to change. The invention of waterproof cloth, such as PUL,
makes the diapers just as leak-proof as disposables. Many crafty people can easily make their
own diapers, too.

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1.1.5 Miscellaneous Baby Inventions
What about those odds and ends that we collect for the nursery? They had to be invented too.
From simple grooming tools to high tech gadgets, here are the invention dates for several
interesting items:

 Baby monitors--supposedly invented in the 1930s

 Fingernail clippers--First patented in 1875

 Tear-free shampoo--invented in 1955

Some common baby toys, such as the rattle, date back to pre-history too. Excavations have
revealed clay, wood, and leather figures filled with beads or pebbles(Shaw, Levitt, Wong,
Kaczorowski, & Group, 2006).

1.1.6 Evolution of Baby Gear


Baby accessories have come a long way over the centuries. It is interesting to note that items
such as toys and clothing evolved at a much faster pace than necessities such as bottles and
diapers.

Even today we often purchase an item for baby care, only to discover that is difficult to clean,
difficult to transport, or unsafe to use. Still, at least modern parents have the option of replacing
faulty items from a variety of alternatives.

Thanks to the evolution of baby gear, baby's lives and mother's sanity have been saved. And who
knows? 200 years into the future, today's seats, carriers, bottles and monitors may look
incredibly crude and prehistoric to our descendants

1.2 Current market situation


To analyze current situation in burewala we visited major stores to see what products they are
providing what is their quality, and at what prices. There are many store in burewala like
 Al Habib supper mall
 Poppy Al Raheem super store
 shopping mart
 Rana general store

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 Sheikh general store
 Al Habib store
 Cosmetics
 Hafiz center
They are offering Skin care product Garments toys milk and many others product for children
from the of age from 0-5.No store has all the product some has garments for kids and some has
cosmetics and variety is also limited people have to go other cities for children shopping.
After visited all the stores we realized that the there is need of such a store that provides all
accessories under one roof at reasonable prices. There is a need to create store where people can
come and buy everything from it without wasting time by going to other stores and shops(Brier,
2008).

1.3 Objective
 To serve best and superior.
 To take care of children and their parents too.
 To earn profit at optimum prices.

Mission Statement

Our mission is to serve the needs of new parents by providing them with a one stop shop for
making the parenting process easier while making zero compromises on quality.

Vision

Our vision is to bridge the gap between traditional ways of nurturing a baby and using modern
baby-care tools available in the international market today. We envision a world where baby-care
is no longer a task but an experience to be cherished. Which is why, Baby superstore aims to be
your go-to brand when it comes to caring for your little one.

Philosophy

We believe that the best gift your baby can get is your time and attention. And that is something
no baby-care brand can manufacture. So we do the next best thing—creating the entire range of
care products thus saving you the time you would otherwise spend in search of the very best for

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your angel. We strive to walk you and other new parents through the most crucial stages of
parenthood by showing you how simple it actually is. The perfect care product is not some
overtly complex or ground-breaking gadget that forces you to plan your life around it but one
which subtly eases itself within your existing lifestyle. And that is the mantra we follow at baby
superstore our best into making the simplest yet most useful baby-care products.

Our Goal

Our goal has been to give our customers friendly efficient service, superior selection and great
values.

1.4 Problem statement


The problem is what new things we are introducing. Our competitors have a limited range of
products therefore it can affect our target group that includes 0 to 5 years Children. Issue is to
offer better and variety product if we don’t solve this issue then sales can be decline and
customer not satisfied ad customer can be moved to other options. The issue occur when we are
not providing range of product or if the products not meeting the expectations then the issue
remain unsolved it is important for us to establish a store where everyone can pick up their
products according to their store at prices less than their competitors.
I wish to figure out how and why pregnant and new parents might be influenced to purchase the
different baby products available.

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The main focus will be how and why the mothers feel affected to own the various baby products
available by the society and how this has changed throughout the years. Another aspect I wish to
figure out in this thesis will be the society’s view on the perfect parent.
Finally I wish to figure out how baby product manufactures might be able to use these findings
and achieve information to create a successful marketing approach
1.5 Significance of study
Now a day’s people needs and wants are changing too quickly because new trends emerged in
which everyone want to make their lives easy. So there is a need to address why it is necessary to
have a baby store in a selected area.
Infant-development experts believe that the first years of a child's life are a prime time for
learning, but sometimes it may be hard to think of new ways to stimulate your baby. Our
products help them to stimulate your baby. Healthcare products help babies to maintain their
health and they grow faster than sick children whose health is not good as compared to babies
who use healthcare products .if they are healthy parents feel pleasure. Toys assist babies in their
physical as well as their mental growth. By playing with different toys like building block their
mental process strengthened and also helps in problem solving. While other toys help children to
exercise by playing their body grows and they become active. Different sceneries with soft
colors help children to remain fresh and healthy. . The videos, DVDs, books and music CDs are
provided to engage, stimulate and develop babies and toddlers with friendly images, music and
playful sound effects

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Chapter 2

2.1 Methodology

“Methodology consist of tools, techniques and procedure to collect, organize, arrange and
analysis research data.”
Methodology is the systematic theoretical analysis of the methods applied to a field of study. It
comprises the theoretical analysis of the body of methods and principles associated with a branch
of knowledge. Typically it encompasses steps such as paradigm theoretical model, phases and
qualitative and quantitative techniques.
Research is a procedure by which we try to find the solution of a problem with the help of study,
observation, comparison and experiment. Research methodology is science of studying how
research is done scientifically. In it we study the various steps that are generally adopted by
researcher in studying his research problems along with logic behind them. In methodology,
researcher applies emblematic criteria for scanning/ solving the projected research problem.

In the following chapter I will describe which methodology method that has been used to create
this thesis. There will be an explanation of choice of methodology, the construction of the data
collected and why this method was used(Friedman & Birch, 1997; Vaismoradi, Turunen, &
Bondas, 2013). The reason why this chapter is so important is because it will enlighten why the
choice fell on a focus group discussion and how it was collected in order to best possible answer
the question of how and why the mothers is influenced to purchase the various baby products and
how they felt society affected them. The secondary data and other studies available will help
enlighten the same question as mentioned above and the historical aspects will help the
understanding of what has happened in the last fifty years for the mothers and why the society is
as it is for today’s mothers.

The methodology choice In this project the qualitative method focus group interview1 has been
used. This method is a primary research method where all of the information does not already
exist. The advantages of using this type of data collection is that the data is collected for the
exact purpose that I need and the design of the analysis is controlled by me and therefore is of

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the quality that I want. The disadvantages are that it is quite time consuming and knowledge of
data collection methods is necessary. When doing data collection it is very important to make
sure that the data consists of external and internal validity.theinternal validity is quite high in this
collection because no external factors influenced the participants. By this I mean that all the
participants were present and they all understood the purpose of the focus group interview and
the questions asked. The external validity was not too high because the results cannot be
generalized throughout all of Danish new mothers but only to this group of mothers which are
mothers with a higher education and more means available. This last point will be elaborated on
in chapter 2 concerning the analysis of the findings.

2.1. Planning the focus group study

It was very important that the purpose of the survey was clear. I wanted to figure out how the
participants felt about a number of baby products, meaning did they own the products and why
or why not? It was also important to figure out who purchased the products and what the
products did to help the mothers. The participants: it was clear that I needed new mothers and I
believed that a “group of mothers” would be a good way to start. In a “group of mothers” the
new mothers already know each other and therefore it is more likely that they will open up and
discuss as opposed to mothers who did not know each other. Also it was important not to have
too many participants because this can result in each person having limited insights and
observations. In the first “group of mothers” there were 6 participants and in the second there
were 7 participants. The location: the first focus group was held at my house where the mothers
experienced a relaxed atmosphere and I ensured that the whole setting was comfortable(Daniel &
Cross, 2018). The reason why this setting is important is that the participants need to feel relaxed
because this will result in the best and more honest discussions. The second focus group was
held at one of the mother’s house for the same reasons as the first group. Number of sessions:
Two focus group interviews were conducted with two different “group of mothers”.

2.2 Conducting the focus group discussions

I, being the moderator, was responsible for creating positive group dynamics and a comfort zone
between me and each group member as well as among the members themselves. Also I needed to

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prepare a moderator’s guide in order to ensure a productive focus group session. This guide was
as follows (this guide was used in both group interviews): - Introduction

a) Welcome to the participants) Explanation of the purpose of the focus group: “I want to
investigate the possible pressure to purchase different baby products that pregnant and new
mothers experience in our society”. c) The course of the focus group: “I will introduce you to
different baby products. For each product you will be asked to discuss some different questions
concerning this particular product. I will introduce five different products. There is no right or
wrong answer so you can discuss whatever comes into mind concerning the product”. d)
Questions?

 Introduction of first product a) Branded clothes: do you own this? Who decides the
purchase of this (mom, dad) and why? Is the price essential here? Is it primarily gifts
from grandparents, friends? Why is it important for you to own this product? Between
each question, the participant had time to discuss.

 Introduction of second product a) Branded prawn: questions were the same as the first
product.

 Introduction of third product a) Baby monitor: questions were the same as the first
product.

 Introduction of forth product a) Baby carriers: questions were the same as the first
product Introduction of fifth product a) Baby toys: questions were the same as the first
product - End question/ summery

a) Why do you think the attitudes towards the different baby products are as it is in today’s
society?

b) Do you feel affected by the society? b) Where do you go to get information and advice?

c) Any last thoughts, feelings or comments?

d) Give my thanks to the focus group for their participation.

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2.2 Data type
There are two main categories of data types which are given as follows.

2.2.1Primary data
Primary data refers to the first hand data gathered by the researcher itself. It is real time data. The
sources of this type of data are surveys, observations, experiments, questionnaire and personal
interview.

2.2.2 Secondary data


Secondary data means data collected by someone else earlier. It is past data and sources of data
are government publications, websites, books, journal articles and internal records etc.
In our research the type of data used is primary because it is crucial to have, unused data to help
determine how and what we are doing. The primary data are original and relevant to the topic of
the research study so degree of accuracy is very high(Prieto-Pérez et al., 2014).

2.3 Data collection


Data collection is the systematic approach to gathering and measuring information from a variety
of sources to get a complete and accurate picture of an area of interest. We collect data on Likert
scale is a scale used to represent people’s attitudes to a topic. The scale is named for the
psychologist who created it, RensisLikert.

2.4 Questionnaire
A questionnaire is a research instrument consisting of a series of questions for the purpose of
gathering information from respondents. The questionnaire was invented by society of London in
1938.We developed about 20-25 questions in our questionnaire and 200-250 peoples answers
these questions and these peoples relate to our product. More these questions are based on
variables.

2.5 Crosnbach’s alpha


Synonymous terms are coefficient alpha, Guttmann’s.cronbach’sis the trivial name used for tau-
equivalent reliability as estimate of the reliability of a psychometric test.
Descriptive statistics (mean median, mode, standard deviation, range and quartile)
Graph for data

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2.6 Frequency Analysis
Frequency analysis is a descriptive statistical method that shows the number of occurrences of
each response chosen by the respondents. When using frequency analysis, SPSS Statistics can
also calculate the mean, median and mode to help users analyze the results and draw
conclusions.

Chapter 3

3.Research analysis

Data Analysis is the process of systematically applying statistical and/or logical techniques to
describe and illustrate, condense and recap, and evaluate data. According to Shamoo and Resnik
(2003) various analytic procedures “provide a way of drawing inductive inferences from data
and distinguishing the signal (the phenomenon of interest) from the noise (statistical fluctuations)
present in the data”.
While data analysis in qualitative research can include statistical procedures, many times
analysis becomes an ongoing iterative process where data is continuously collected and analyzed
almost simultaneously. Indeed, researchers generally analyze for patterns in observations through
the entire data collection phase (Scavenge, Robinson, 2004). The form of the analysis is
determined by the specific qualitative approach taken (field study, ethnography content analysis,
oral history, biography, unobtrusive research) and the form of the data (field notes, documents,
audiotape, and videotape).
An essential component of ensuring data integrity is the accurate and appropriate analysis of
research findings. Improper statistical analyses distort scientific findings, mislead casual readers
(Shepard, 2002), and may negatively influence the public perception of research. Integrity issues
are just as relevant to analysis of non-statistical data as well.

3.1 Frequency analysis


Knowing the usual frequencies of letters in English communication, if the encryption method
does not effectively mask these frequencies it is possible to statistically determine parts of the

20
plaintext from looking at the cipher text alone. Let’s look at an example based on a plaintext
encrypted with the Caesar Cipher – a cipher that provides no protection from frequency analysis.
Frequency analysis is the study of letters or groups of letters contained in a cipher text in an
attempt to partially reveal the message. The English language (as well as most other languages)
has certain letters and groups of letters appear in varying frequencies.
This is a chart of the frequency distribution of letters in the English alphabet. As you can see,
the letter ‘e’ is the most common, followed by‘t’ and ‘a’, with ‘j’, ‘q’, ‘x’, and ‘z’ being very
uncommon.
A tacit assumption of investigators is that they have received training sufficient to demonstrate a
high standard of research practice. Unintentional ‘scientific misconduct' is likely the result of
poor instruction and follow-up. A number of studies suggest this may be the case more often
than believed (Nowak, 1994; Silverman, Manson, 2003). For example, Sica found that adequate
training of physicians in medical schools in the proper design, implementation and evaluation of
clinical trials is “abysmally small”. Indeed, a single course in biostatistics is the most that is
usually offered.
A common practice of investigators is to defer the selection of analytic procedure to a research
team ‘statistician’. Ideally, investigators should have substantially more than a basic
understanding of the rationale for selecting one method of analysis over another. This can allow
investigators to better supervise staff that conduct the data analyses process and make informed
decisions.

21
Data analysis
Q.NO.1. I believe that the price of the product has the impact on the quality?

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 60 50% 50% 50%
Agree 32 26.6% 27% 77%
UND 08 6.6% 07% 84%
Disagree 13 10.8% 10% 94%
Strongly Disagree 07 5.8% 06% 100.0%

Total 120 100.0%

22
Results: the total respondents are 120 from which 50% shows that the price influence
their purchase decision therefore, setting price for products presents difficult task.

Q.NO.2. Product features, benefits, style and color are appealing to me.

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 40 33.3% 33% 33%
Agree 25 20.8% 21% 54%
UND 05 4.1% 04% 58%
Disagree 30 25.0% 25% 83%
Strongly Disagree 20 16.6% 17% 100.0%

Total 120 100.0%

23
Results: the physical outlook always play an important role in the selection of products
and result reflected this.

Q.NO.3. I preffer quality over price.

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 58 48.3% 48% 48%
Agree 40 33.0% 33% 81%
UND 0 05% 0% 81%
Disagree 20 16.6% 17% 98%
Strongly Disagree 2 1.6% 02% 100.0%

Total 120 100.0%

24
Result: the result indicate that customers are more quality oriented thn price oriented.
Althoughwe set ottimum prices but quality is important
Q.NO.4. I prefer to buy product physically instead to buy them from internet.

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 47 39.1% 39% 39%
Agree 31 25.8% 26% 65%
UND 11 9.1% 09% 74%
Disagree 23 19.1% 19% 93%
Strongly Disagree 08 6.6% 07% 100.0%

Total 120 100.0%

25
Results: about 39% of respondents are strongly agreed to buy product physically and
19% are disagree.

Q.NO.5. Baby store is easy, convenient and interactive?

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 51 42.5% 42% 42%
Agree 27 22.5% 22% 64%
UND 17 14.6% 15% 79%
Disagree 08 6.6% 07% 86%
Strongly Disagree 17 14.1% 14% 100.0%

Total 120 100.0%

26
Results: the result indicate that out of 120 respondents 51% strongly agree and 17%
Are strongly disagre.

Q.NO.6. Baby health care and other products (toys) help in the mental and physical health of
baby?

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 73 60.8% 61% 61%
Agree 40 33.3% 33% 94%
UND 01 0.8% 01% 95%
Disagree 02 1.6% 02% 97%
Strongly Disagree 04 3.3% 03% 100.0%

Total 120 100.0%

27
Results: this is clear that most of respondents are strongly agree that baby products and
mental growth and only 2 are disagree from out statement.

Q.NO.7. Do you agree/disagree that there is need of BABY superstore in burewala.

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 49 40.8% 41% 41%
Agree 39 32.5% 33% 74%
UND 04 3.3% 03% 77%
Disagree 15 12.5% 12% 89%
Strongly Disagree 13 10.8% 11% 100.0%

Total 120 100.0%

28
Results: citizens of burewala show there is strong demand for BABY superstore. Only
12% are disagreed with statement.

Q.NO.8. Store is saving valuable time of busy & working parents?

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 80 66.6% 67% 67%
Agree 35 29.1% 29% 96%
UND 0 0% 0% 96%
Disagree 02 1.6% 02% 98%
Strongly Disagree 03 2.5% 02% 100.0%

Total 120 100.0%

29
Results: results show the store has capability to save time of busy & working parents.
There is huge variety of products so parents don’t need to waste time in searching.
96%are agreed

Q.NO.9. More discounts, free gifts and promotion offers endorse me to shop product from store?

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 56 46.6% 46% 46%
Agree 37 30.8% 31% 77%
UND 07 5.8% 06% 83%
Disagree 11 9.1% 09% 92%
Strongly Disagree 09 7.5% 08% 100.0%

Total 120 100.0%

30
Results: from above table it is clear that promotional activities have positive response.
31% are agreed and 9% are disagreed.

Q.NO.10. Are you sensitive to the ethical character of the product you buy for your baby?

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 42 35.0% 35% 35%
Agree 39 32.5% 32% 67%
UND 07 5.8% 06% 73%
Disagree 20 16.6% 17% 90%
Strongly Disagree 12 10.0% 10% 100.0%

Total 120 100.0%

31
Results: 35% are strongly agreed. 32% are agreed. 17% are disagree. 10% are strongly
disagree.

Q.NO.11. More and more customers show interest towards huge variety of products.

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 35 29.1% 29% 29%
Agree 29 24.1% 24% 53%
UND 18 15.0% 15% 68%
Disagree 20 16.6% 17% 85%
Strongly Disagree 18 15.0% 15% 100.0%

Total 120 100.0

32
Results: the above result shows that respondent like wide variety. Because they want to
have different product then other. Only 17% are disagreed.

Q.NO.12. Courteous staff and friendly sales people increase my satisfaction?

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 60 50.0% 50% 50%
Agree 12 10.0% 10% 60%
UND 08 6.6% 07% 67
Disagree 30 25.0% 25% 92%
Strongly Disagree 10 8.3% 08% 100.0%

Total 120 100.0%

33
Results: the results show that courteous staff and friendly sales environment increases
satisfaction. 60% people are strongly agreed with the statement.

Q.NO.13. I am provided with the information of the product and other special trick to use the
product?

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 38 31.6% 32% 32%
Agree 33 27.5% 28% 60%
UND 29 24.1% 24% 84%
Disagree 15 12.5% 12% 96%
Strongly Disagree 05 4.1% 04% 100.0%

Total 120 100.0%

34
Results: Most of our respondents shows positive attitude and are agree if they are
provided with product information. 38% are strongly agreed.

Q.NO.14. Is there I any impact of advertisement on the selection of brand (store).

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 49 40.8% 41% 41%
Agree 36 30.0% 30% 71%
UND 08 6.6% 07% 78%
Disagree 15 12.5% 12% 90%
Strongly Disagree 12 10.0% 10% 100.0%

Total 120 100.0

35
Results: Advertisement affect greatly on selection of brand. 41% are strongly agreed and
15% are disagree.

Q.NO.15. do you prefer automated billing and receiving system.

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 31 25.8% 26% 26%
Agree 35 29.1% 29% 55%
UND 09 7.5% 07% 62%
Disagree 20 16.6% 17% 79%
Strongly Disagree 25 20.8% 21% 100.0%

Total 120 100.0%

36
Results: yes, it is easy and convenient. Therefore, mostly respondents are agreed and
some are disagree because some find it difficult.

Q.NO.16. Based on my experience, I would recommend baby products to my relatives &


friends?

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 33 27.5% 27% 27%
Agree 39 32.5% 33% 60%
UND 0 0% 0% 60%
Disagree 20 16.6% 17% 77%
Strongly Disagree 28 23.3% 23% 100.0%

Total 120 100.0%

37
Results: The result indicates that 33% are agree that they recommend our products.

Q.NO.17. Quality services help in building good reputation of brand.

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 40 33.3% 34% 34%
Agree 46 38.3% 38% 72%
UND 09 7,5% 08% 80%
Disagree 20 16.6% 17% 97%
Strongly Disagree 04 3.3% 03% 100.0%

Total 120 100.0%

38
Results: out of 120 respondents 72% are agree and only 20% are disagree.

Q.NO.18. Do you feel happiness by seeing your baby healthy and safe because of our product?

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 47 39.1% 39% 39%
Agree 38 31.1% 31% 70%
UND 03 2.5% 03% 73%
Disagree 20 16.6% 17% 90%
Strongly Disagree 12 10.0% 10% 100.0%

Total 120 100.0%

39
Results: the result indicates that most respondents are agreeing with the statement and
few of them are disagree.

Q.NO.19. If prices are less than the prices of other stores. Do you like to buy products from our
store?

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 53 44.1% 44% 44%
Agree 30 25.0% 25% 69%
UND 02 1.6% 20% 71%
Disagree 19 15.8% 16% 77%
Strongly Disagree 16 13.3% 13% 100.0%

Total 120 100.0%

40
Results: if quality is same but price is low than customer will prefer our store to purchase
quality products as indicated by results.

Q.NO.20. The name “BabyLand” is easy to memorize.

Table
Valid Cumulative
Frequency Percentage Percentage Percentage
Valid Strongly Agree 54 45.0% 45% 45%
Agree 48 40.0% 40% 85%
UND 11 9.1% 09% 94%
Disagree 05 4.1% 04% 98%
Strongly Disagree 02 1.6% 02% 100.0%

Total 120 100.0%

41
Results: as per results the name “BabyLand” is easy to memorize.

3.2 SWOT analysis


SWOT analysis is a strategic planning technique used to help a person or organization identify
strengths, weaknesses, opportunities, and threats related to business competition or project
planning.

Strength

Characteristics of the business or project that give it an advantage over others. The strength of
our project which gives advantage over others are:

The cost of starting a business is not so high. The low cost means that our shop has a minimal
risk for investor.

42
Our store has a good brand structure. We collect recognized brands. We think that these good
brands will help us appeal to more customer

We are providing great introduction of all products items. These include the size color and price.
More we give information about teaching the customer how to clean and preserve these products.

Have a great concern on healthy and hygienic products.

All the products in store has superior and good design.

The target market is clear for us.

Weaknesses:

Characteristics of the business that place the business or project at a disadvantage relative to
others.

Although our store has strength, we also have weaknesses. The shop is not efficient in tracking
the feedback of customer.

The store is not focusing on research and development. it is our weakness.

Opportunities:

Elements in the environment that the business or project could exploit to its advantage.

1. The life styles are changing rapidly in today’s environment. Changing lifestyles of
society presents opportunity for store.
2. We have minimal competition. it is easy for us to collect customers base. We also
graph this opportunity to create ourselves brand.
3. There is growing need for hygiene. by providing such products the company can
increase their sales volume.
4. We also have the opportunity to increase market potential.

Threats:

Elements in the environment that could cause trouble for the business or project.

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1. It is easy to copy. As a result our customers can be divided among them this present
threat.
2. Giving optimal prices may reflect perception that the products may be of not good
quality.
3. The store is not known to anyone.

3.3 PEST analysis


“A PEST analysis is an analysis of the external macro-environment that affects all
firms. P.E.S.T. is an acronym for the Political, Economic, Social, and Technological factors of
the external macro-environment.” Such external factors usually are beyond the firm's control and
sometimes present themselves as threats.

Political factors

Political or politically motivated factors that could impact the business. Examples of political
factors are:

 Government policy
 Political stability/instability
 Tax policies
 Data protection law
 Competition regulation
 Import restrictions on quality and quantity of product

Increase or decrease in tax

This could be an example of a political element. Our government might increase taxes for some
companies and lower it for others. The decision will have a direct effect on your businesses. So,
you must always stay up-to-date with such political factors.

Government policy

The change in government policies affects the operations and processes of business a lot. The
change in government policy or new policy can change your entire business process.
44
Political stability/instability

The unstable political environment is not a good sign for any business. The business should
always keep in mind this factor.

Competition regulation

Some business reaches to extreme and unethical level in desire to achieve profits. This state is
considered illegal for government. This is hyper competition in which business competes with
each other. The government then has to regulate competition among businesses.

Import restrictions on quality and quantity of product

The government has introduces ISO standard to meet quality specification. If you are going to
deliver goods to customer you must ensure that the products meet their quality standards that has
developed by government.

Data protection laws

Now days, privacy and security issues are emerging. The businesses have to keep customer
information that includes their addresses phone number emails and other legal information safe.
Otherwise the political steps can influence our business.

Economic factors

Economic factors are the fundamental data about the market and economy taken into
consideration when an investment or business value is calculated. In other words, these investors
and businessmen have to pay attention to outside economic forces when valuing an investment
besides the intrinsic value of the asset.

 Economic factors may include


 Wages/labor cost
 Inflation/deflation
 Governmental activity
 GDP growth/loss

45
 Policies
 Tax rates
 Unemployment

Labor cost

Labor cost has been and continue to be one of the largest and most controversial economic
factors in the world. When hiring labor to run business the cost of labor must be clear so that
high labor cost remains less to profit.

Inflation/deflation

High inflation rates increases the prices. Therefore demands for different products decrease. Low
inflation decreases prices and increase the demands.

Tax rates

If tax rates are low on debt then businesses are able to take loan from banks and to invest it
business. Higher tax rates limit this ability and business may not take loans.

GDP growth/loss

It will increase the income level of residents that can leads to the increase in buying power of
people and this in turn sales.

Unemployment

It occurs when a person who is actively searching for employment is unable to find
work. Unemployment is often used as a measure of the health of the economy.

Social factors

Social factors refer to Social attitudes, behaviors, and trends that impact on your organization
and target market.

Cultural impact

The Pakistan culture is changing from traditional to modern. The societies are gaining
knowledge and educating themselves. There is tradition to use same products for their next
expected babies but know the modern society change this concept.
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Population growth

The Pakistan is among the countries which has large population. The birth rate in Pakistan is
29.6%.this is beneficial for our business because automatically it increases the sales.

Status

Now to maintain a status for everyone in front of society is important. The society gives values
to people who have good reputation in society. By owning our product also helps in building
status.

Health and safety measure

This is also has a significant importance. All the products help in the health of babies and we are
also considering safety measures because it is part of society.

Technological factors

Technological factors are variables that are being used for evaluating available alternatives with
respect to technological capabilities. Organizations consider it an important tool for improving
operations and functions

 Computer calculation speed/power


 Internet connectivity
 Automated system
 Security

Computer calculation speed/power

The business has efficient computer calculations. This is saving the customers time and effort
and we can give better customer services that increase their satisfaction.

Internet connectivity

In electronic world the internet has made the life so easy .the store has recognized the need and
our store is providing an internet facility for their customer.

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Automated system

The automated billing and receiving system helps business to form databases of their customer
which give our business information about them. This information gives highlights such as
purchase patterns and time purchase.

Security

The store has security guards and cameras which will safe customers. We also have storage
boxes if you have to store your valuable things in them during shopping.

3.4 Promotional policies


Promotional policies are designed to promote career growth through providing and maintaining
an appropriate work environment and adequate resources to enable professional employees to
apply and develop their skills and capacities towards achieving an organization’s goals
Factors that should be considered when determining the eligibility of an employee’s promotion
include performance levels, skills, education, relevant experience and professional development.
The store will provide promotional policies to their employees based on their ability to perform
well their skills and on their experience.
Advertising tool
Advertising is one of the most important aspects of marketing because consumers can't buy
products unless they know what they are and where to get them.
 Print and Outdoor Advertising
The advertising tool used for the store is Print and outdoor advertisements relay information to
consumers through physical means. Print advertisements are ads placed in publications, such as
newspapers, newsletters and magazines. Examples of outdoor advertising include billboards,
signs and posters. Through this consumer can get awareness about them. These tools are also
cheap to use.
 Television advertising
Television is traditional advertising tools that do not require the delivery of information in a
physical form. TV ads can potentially reach millions of consumers simultaneously. The
effectiveness of TV ads depends on the popularity of the show (jeeto Pakistan) during which the
ads are broadcast.

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3.5 Marketing strategies
Marketing strategy is a business's overall game plan for reaching people and turning them into
customers of the product or service that the business provides. The marketing strategy of a
company contains the company’s value proposition key marketing messages, information on the
target customer and other high-level elements.
 Social media
Social media can help our businesses build up relationships with customers. Posting engaging
content on social media can promote our services or products to a wide audience. We can use
Facebook and instagram for marketing.
 Charity Work
One marketing strategy that we can use is getting involved in charity work. From attending local
charity events to donating funds to important causes, being actively involved in charity work is
an effective way to boost our business’s corporate responsibility and credibility.
 Word of mouth
Word of mouth marketing is the passing of information from person to person by oral
communication. Customers frequently talks and share with friends and family about their
experiences. Word of mouth is one of the ancient ways people learned about what to purchase.
Modern marketer has learned how to create authentic word of mouth. We will provide quality
and superior services so that they create positive word of mouth
 Google
It is a particularly useful tool for local businesses with a local customer base. When people in the
local area search on Google for the product or service you provide, this is a great way to have
your business appear near the top of that search.
When potential customers see your profile and accompanying good reviews at or near the top of
the list, your business automatically gains credibility and people will be more willing to trust
you. This is expensive we use this tool in future so that we are in position to use this tool.

3.6 Pricing strategies


Pricing strategy refers to method companies use to price their products or services. Almost all
companies, large or small, base the price of their products and services on production, labor and
advertising expenses and then add on a certain percentage so they can make a profit.

49
 Product bundle pricing
Often sellers combine several products in the same package. This also serves to move old
stock. And customer feels attraction toward this pricing strategy and buy bundle of
product.
 Psychological pricing
This approach is used when the marketer wants the consumer to respond on an emotional,
rather than rational basis. The consumer is psychologically attracted to numbers such as
99 rupees instead of 100.
 Promotional pricing
Pricing to promote a product is a very common application. There are many examples of
promotional pricing including approaches such as BOGOF (Buy One Get One Free),
money off vouchers and discounts. These can be used to promote baby stores product.
 Economy pricing
The costs of marketing and promoting a product are kept to a minimum so that product
can be sold at economic prices. Our store has some economic products for your babies.
During times of recession economy pricing sees more sales.
 Temporary discount pricing
Businesses also use temporary discounts to increase sales. Temporary discount pricing
strategies include seasonal price reductions and even volume purchases. The baby
superstore will also use temporary discount pricing.

3.7 Conclusion
From data analysis we concluded that 80% individual have expresses the need for superstore.
Respondents give positive response to our business. Through the analysis we realize the opening
of baby superstore will be a good step in Burewala as there is no proper outlet facility for the
citizens of Burewala. Further research could be done on schooling products for their growing
kids at initial level.

50
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Chapter 4:

4.Financial Planning

Financial Plan is an ongoing process to help you make sensible decisions about money that can
help you achieve your goals in life; it's not just about buying products like a pension or an
ISA.A financial plan is a comprehensive evaluation of an investor's current and future
financial state by using currently known variables to predict future cash flows, asset values and
withdrawal plans. babyland is a type of entity owned by 3 partners and designated CEO,
accountant and operational manager, and hired one is marketing manager. Almost all the things
are outsourcing by the contracted parties without transport.

4.1 General Terms & Conditions


 Breakages and loss will be charged by insurance.
 These are some general assumptions regarding the venture of “BabyLand”.

4.2 General Assumptions


First year we are expecting a moderate level of profit and even breakeven point is also acceptable
Capturing most of the market share at the end of third year.
To increase the profit at the end of third year with a fair growth rate.

4.3 Project investment


In project investment we describe our all expenses. All expenses based on nearby reality. In
which we divide our expense into different segments like legal exp, advertisement, rent,
furniture, vehicle and machinery.

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Table 5.3: Project Investment

Legal exp 40000 PRs


Advertisement 199500
Building rent 216000
All furniture 100000
Vehicle 600000
Machinery 1200000
Total 1,155,500

4.4 Cost of Advertising Method


In which we describe our all advertisement way and also its cost. Who we advertise and what’s
its cost. All cost mentioned bellow nearby reality.

Table 5.4: Advertisement method and cost

Sr# Particulars No of Size Per Item Total Items Remarks


items Rate cost

1 Road Banners 60 5/2.5 150 9000 RS Per year

2 TV Marketing 30s 4000 48000PRs Per year

3 Ceremony cards 1500 5 7500PRs Per year

4 Newspapers 5000 3 15000PRs Per year

5 Bill boards 4 10/15 30000 120000PRs Per year

Total 199,500
budget

4.5 Costs
Types of costs include:

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4.5.2 Fixed cost:
A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or
services purchased or sold. Fixed costs are expenses that have to be paid by a company,
independent of any business activity.

Table 5.5.2: Fixed Cost

Fixed cost Amount

Building rent 201000 PRs


Advertisement 199500 PRs
Salary 540000 PRs
Depreciation 145000 PRs

Legal exp 40000 PRs

Total fixed cost per year 1,125,500PRs

4.6 Break Even Point


The breakeven point is the level where total revenues equal are total expenses. In other words,
the break-even point is where a company produces the same amount of revenues as expenses
either during a business process or an accounting period.

4.7 Pricing
We are going to set our price according to previous expenses. This includes fixed expenses and
variable expenses. All variable cost depends on purchasing products from competitive market.

4.8 Sales Budget (for the year 2018)


Sales budgets and plans include:

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4.8.1 Sales plan:
A sales budget estimates the sales in kg as well as the estimated earnings from these  sales.
Management carefully analyzes economic conditions, market competition, production capacity,
and selling expenses when developing the sales budget
In sales plane we discuss our expected sale quarterly and annually according to our price that we
set based on per kg
Table 5.8.2: Sales Plan

2018 Total

1st Q 2nd Q 3rd Q 4th Q

Clients 25 50 100 130 305

Sales 800,000 1,600,000 3,200,000 4,200,000 9,800,000

4.9 Projected profit and loss statement:


An income statement is a financial statement that reports a company's financial performance over
a specific accounting period. Financial performance is assessed by giving a summary of how the
business incurs its revenues and expenses through both operating and non-operating activities.
We discus under two years’ income statement which include sales in a year all expenses like
fixed expenses and variable expenses and 35% tax.

TABLE 5.9: PROFIT AND LOSS STATEMENT

BabyLand
Profit and Loss Statement
For the year ended
2019 (RS) 2020 (RS)

Sales of year 9,800,000 12,000,000


Direct expenses (Cost of Goods Sold)
Purchases 5,000,000 5,900,000
Transport exp 90,000 120,000
Total expenses 5,090,000 6,020,000

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Gross Profit 4,710,000 5,980,000
Indirect expenses
Rent 280,000 280,000
Salary 2,000,000 2,000,000
Depreciation 80,000 72,000
Legal exp 40,000 40,000
Advertisement 199,500 205,000
Other expenses 250,000 280,000
Total operating Expenses 2,849,500 2,877,000
Profit before tax 1,860,500 3,103,000
Taxes Incurred35% 651,175 1,086,050
Profit after tax 1,209,325 2,016,950

5.10 Projected Balance Sheet:

A balance sheet is a financial statement that summarizes a babyland’s assets, liabilities and
shareholders' equity at a specific point in time. These three balance sheet segments give investors
an idea as to what the Sunshine owns and owe, as well as the amount invested by shareholders.

We expect a healthy growth in net worth and a healthy financial position. We do not project any
real trouble meeting our debt obligations, as long as we achieve our specific objectives.

Table 5.10.1 Balance Sheet

Babyland
Balance Sheet
For the Year Ended
Assets 2019(Rs) 2020(Rs)
Current Assets
Cash 2,000,000 2,200,000
Account receivables 5,000,000 5,550,000
Other receivables 600,000 650,000
Stock 8,000,000 8,500,000

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Total current Assets 15,600,000 16,900,000
Fixed Assets
Computers and electronic 800,000 720,000
Furniture and Fixtures 250,000 240,000
Total fixed Assets 1,050,000 960,000
Total Assets 16,650,000 17,860,000

Liabilities and Capital


Account payable 4,800,000 5,200,000
Other payable (Rent and others) 640,675 643,050
Total liabilities 5,440,675 5,843,050
Profit after tax 1,209,325 2,016,950
Capital 10,000,000 10,000,000
Total Liabilities and capital 16,650,000 17,860,000

57
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Aappendix

I am a student of BBA (Hon’s) at Barani Institute of Sciences. I am seeking interview of


parents/Guardian of the baby for the product that I am offering in the baby store.it will take
5to10 minutes. Your corporation will be high appreciated and the provided information will be
treated for the research purpose

1. Name
______________________________________________

2. Age
18-25 26-33 34-40 41
or above

3.Gender
Female Male

4. Qualification
Matric Inter Graduation
Master

5. Income
 0-20000 20000-40000 40000-60000 
60000 or above

6. Resident
Urban Rural

Sr.No Statement SA A UND DA SDA


1 I believe that the price of the product has the impact on the quality?
2 Product features, benefits, style and color are appealing to me?

61
3 I prefer to buy product instead of internet?
4 Are you sensitive to the ethical character of the product you buy for
your baby?
5 Do you feel happiness by seeing your baby healthy and safe because
of our product?
6 More discounts, free gifts and promotion offers endorse me to shop
product from store?
7 Baby store is easy, convenient and interactive?
8 Store has permanent physical address?
9 Do you compare different baby product brands?
10 Store is saving valuable time of busy & working parents?
11 Based on my experience, I would recommend baby products to my
relatives & friends
12 Baby health care and other products (toys) help in the mental and
physical health of baby?
13 Courteous staff and friendly sales people increase my satisfaction?
14 There is a strong demand of store in the selected area?
15 I prefer quality over price?
16 The profit will be due to sales of baby products?
17 Childs show interest towards products?
18 More and more customer will attract towards stores as it has varsity?
19 The store is active in delivering services?
20 It sometimes bothers me that I can’t afford to buy all the things I
would like to buy?
21 How much you agree/disagree with the services the store
22 I am provided with the information of the product and other special
trick to use the product?
23 Is like to buy product that?
24 There is no other store in the area can it give advantage?

62
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